Harley Bassman, creator of the MOVE Index and a major shareholder at Simplify Asset Management, has issued a letter to shareholders criticizing the firm's governance and fee structures. The company currently manages $13.6 billion across 42 ETFs.
Bassman highlights a practice he terms Russian doll stacking, where approximately 38% of Simplify's assets are invested in other internal products. He cites the SBIL fund, which holds $4.8 billion in assets sourced entirely from other Simplify ETFs, as a primary example of this structure.
The conflict follows Bassman's removal as a portfolio manager in November 2025, which affected funds including the $1.4 billion MTBA. Bassman claims his departure resulted from raising concerns about revenue-sharing conflicts, while CEO Paul Kim disputes these allegations.
The dispute has escalated to legal proceedings, with Bassman pursuing arbitration for approximately $5 million in compensation. He alleges that the firm failed to honor revenue-sharing agreements established during his tenure as Managing Partner, which began in February 2021.
