Uploaded February 2026 | Updated September 2026, 2 weeks ago
In the rapid-moving world of delegated money management, it is important to recognize the differences in how mutual funds and alternative assets operate. When it comes to alternatives, how do these funds wind up with strong incentive contracts for the money managers as opposed to flat fee contracts more commonly seen in mutual funds? Why do managers of alternatives cap their fund sizes when it could potentially lead to lower fees?
On this episode, hosts and finance professors Jonathan Berk and Jules van Binsbergen examine the key differences between mutual funds and alternatives, by unpacking research in a new paper co-authored by Berk.
The conversation covers performance fees, persistent alpha, limits on capital, and the key liquidity distinction between mutual funds and alternatives.
Submit your questions to the show here: bit.ly/AllElseEqual
Find All Else Equal on the web: https://lauder.wharton.upenn.edu/allelse/
In the rapid-moving world of delegated money management, it is important to recognize the differences in how mutual funds and alternative assets operate. When it comes to alternatives, how do these funds wind up with strong incentive contracts for the money managers as opposed to flat fee contracts more commonly seen in mutual funds? Why do managers of alternatives cap their fund sizes when it could potentially lead to lower fees?
On this episode, hosts and finance professors Jonathan Berk and Jules van Binsbergen examine the key differences between mutual funds and alternatives, by unpacking research in a new paper co-authored by Berk.
The conversation covers performance fees, persistent alpha, limits on capital, and the key liquidity distinction between mutual funds and alternatives.
Submit your questions to the show here: bit.ly/AllElseEqual
Find All Else Equal on the web: https://lauder.wharton.upenn.edu/allelse/
