NOFIXEDFEE
.com
We only get paid when you outperform.
No fixed management fees. No hidden costs. Ever.
We only earn a performance fee when your investment clears three hurdles:
exceeds 6% returns, beats the market index, and surpasses the high-water mark.
True alignment. Built for decades.
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The Problem
Fixed Fees Destroy Compounding
Even a "modest" 1.5% annual fee, compounded over 30 years, can reduce your final wealth by over 35%. That's not management—that's erosion.
The Hidden Cost of Fixed Fees
Misaligned incentives
Managers are rewarded for gathering assets, not generating returns.
Compounding drag
Fees compound against you, year after year, regardless of performance.
No accountability
You pay the same whether the fund returns +20% or -10%.
Our Solution
The Triple-Hurdle Model
We earn nothing unless all three conditions are met. No exceptions. No loopholes. Pure alignment.
0%
Fixed Fee
Never. Not under any circumstance.
6%
Return Hurdle
Your first 6% is always yours.
Index
Market Hurdle
We must outperform the benchmark.
HWM
High-Water Mark
No fees until we exceed previous peak.
20% performance fee — only on gains above 6%, only when all three hurdles are cleared.
The Flagship Fund
The Compounding Machine
A concentrated portfolio of 15-20 world-class investment companies. We "ride alongside" the world's best capital allocators and benefit from their decades of expertise, deal flow, and disciplined ownership.
Historical Outperformance
Investment trusts outperform index funds by 1.5-3% annually across major sectors.
25% Disciplined Leverage
Structural leverage to amplify compounding. Not for trading. Controlled and risk-aware.
Pre-IPO Value Access
Companies stay private ~12 years now. Most value is created before IPO.
Why Investment Companies
✓
Skin in the game — managers invest their own wealth
✓
Permanent capital — no forced selling in downturns
✓
Proven track records — decades of outperformance
✓
Structural discounts — often trade below intrinsic value
Piggyback on Their Knowledge
These companies have full-time research teams, decades of relationships, and access to deals you'll never see. Board seats. Private placements. Pre-IPO rounds.
Through The Compounding Machine, you tap into all of it.
Complete Transparency
How Fees Work
Traditional funds charge 1-2% annually regardless of performance. We charge nothing unless we clear all three hurdles.
> 6%
Return Hurdle
Beat Index
Market Hurdle
New High
High-Water Mark
Four Scenarios
4%
6%
—
€0
Below 6% hurdle
8%
10%
—
€0
Above 6%, but below market
12%
5%
Below
€0
Still recovering previous losses
15%
8%
Above ✓
20% of 9%
All three hurdles cleared ✓
The high-water mark means we never charge fees on gains that merely recover previous losses.
When we win, you've already won more. When markets are flat or down, you pay nothing.
Our incentive is to compound your wealth, not to gather assets and charge fees.
What is the High-Water Mark?
If the fund drops from €100 to €80, and then recovers to €100, we earn nothing on that recovery. The high-water mark ensures you never pay performance fees on gains that simply restore previous losses. We only earn when you reach new highs—real wealth creation, not recovery.
Investment Philosophy
Built for Decades, Not Quarters
What We Don't Do
×
No speculation
×
No short-term trading
×
No market timing
×
No reactionary behavior
×
No leverage for trading
What We Do
✓
PatienceMeasured in decades.
✓
DisciplineThrough all cycles.
✓
Long-term ownershipBuy to hold.
✓
CompoundingLet time work.
✓
Staying investedTime in > timing.
"The most powerful force in investing is not prediction, but time combined with compounding."THE COMPOUNDING MACHINE PHILOSOPHY
12-17%
Target Annual Return
~5 yrs
Doubling Time at 15%
16x
€100K → €1.6M in 20 years