1% is not enough incentive for a long only fund. Maybe if they were managing a billion dollars but most of these funds won’t get close to that any time soon. I would prefer a long fund I invested to get 10 or 20% on the upside. Or maybe you set a benchmark off of the S&P 500 and get 20% upside after beating the S&P.
I wouldn’t want the team I invested in moving on or getting bored because of the 1%.