You have nailed the issue with the business model. In terms of...

You have nailed the issue with the business model. In terms of resolving it, the problem is not with management. They know the problem but are powerless to get it fixed. With Sexton the Chair of both BPAM and BFC and Gerlach on the Board of both BPAM and BFC there is no chance of management being able to influence an outcome of BPAM either being removed or at a minimum having their outperformance fee reduced. They would get shut down immediately and be committing career suicide. This means it is up to the Board or shareholders - Sexton controls the Board and has handpicked overseas investors. There are also significant payouts if BFC terminate the management agreement with BPAM - I can't remember the specifics but they are onerous.

The other point to consider is that the outperformance fee to BPAM can apply even if there's no profit. It only needs the share price to increase by more than the ASX index they use as a benchmark. The levels of return are significant and would likely wipeout the majority of any profit the business could make in the future.

The business model is the fundamental issue for investors in the company and holds the share price back.