The new fund managers
|Scott Plummer, McCallum, Lesley Cartmell and Compton
Dealing with market madness
Bedlam Asset Management's Jonathan Compton is putting his money where his mouth is. He was, and still is, so appalled with the state of the asset-management industry that he left the security and comfort of his job at Credit Lyonnais Securities Asia to set up his own firm. In order to ensure that the managers' interests are clearly aligned with those of their clients, Compton will earn precisely nothing, and his colleagues not much more, until the Bedlam funds hit specific return targets.
"Until we hit critical mass and make customers absolute gains we don't get paid," says Compton. All three Bedlam funds are based on a minimum absolute return of 1.25% a quarter before a management fee can be taken. Compton does not get paid until the firm is in profit. Other staff receive no bonuses either until that time. "This makes fund managers put their necks on the line," says Compton.