Data processing: financial – business practice – management – or co – Automated electrical financial or business practice or... – Finance
Reexamination Certificate
2004-04-30
2009-11-24
Dixon, Thomas A (Department: 3696)
Data processing: financial, business practice, management, or co
Automated electrical financial or business practice or...
Finance
C705S035000
Reexamination Certificate
active
07624059
ABSTRACT:
A method and financial product provides improved performance for the investments including, in part, reduced risk by decreasing volatility through the implementation of a financial technology for any financial relationship which utilizes performance-based fees as all or part of the manager compensation. An accrual/reverse accrual approach puts the manager's fees at risk to lower volatility and to benefit the investor. Fractional payouts of the performance fee with accrual carry forward are provided in addition to an asymmetrical accrual. A longer cycle time, high-frequency fee calculations, a pre-funded accrual account and a layered fee schedule provide further stabilizing effects. This is applicable on an individual portfolio level, to a composite portfolio level, as well as on a third party level. The method will benefit any institution or portfolio that can directly or indirectly invest in a portfolio that utilizes performance-based fees or the services of a manager that receives part or all of its compensation from performance-based fees.
REFERENCES:
patent: 6470325 (2002-10-01), Leemhuis
patent: 7085738 (2006-08-01), Tarrant
patent: 2003/0028456 (2003-02-01), Yolles
patent: 2003/0120574 (2003-06-01), Wallman
Reginold and Andrew Rudd; Financial Analysts Journal; Jan.-Feb. 1987; pp. 27-38; “Incentive Fees: Who Wins? Who Loses?”.
Grinold and Rudd, Incentive Fees: Who wins? Who Loses? Financial Analysts Journal, Jan-Feb 1987, p. 27-38.
Jaffarian Ernest
Welton Patrick L.
Dixon Thomas A
Fu Hao
Gemstone Technologies, LLC
Schiff & Hardin LLP
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