The question comes up a lot because there are several variables to consider. Like so many aspects of finance and economics, the answer is dependent on market conditions, the particulars of the strategy, the investor’s expectations and assumptions, the time horizon, and so on. Even when the main issues are nailed down, there’s still plenty of debate for deciding what’s a fair price. It may be reasonable to pay above-average fees—perhaps even a lot above average—for certain types of management services, but the opposite tends to be the prudent rule due to our old nemesis: uncertainty about the future.