Ultimately, I respect your position, funds are not for everyone. Obviously, a professional investor would be able to manage his own risk and walk away not paying the 5% of profits management fee. There are other issues however, such as, we can often get 10, 15 and 20% off a price because we buy 500, 1000 and 2,000 shares at a time. I pass this value along to investors. Plus, by virtue of our size, once we get a position we have no need to trade it and can wait it out to matutity while we buy into other investments. A lot of smaller investors mill their accounts, even unintentionally because they maintain small positions and look for short term gains of 30% or so. We take a much longer view and we pass this value on to our shareholders as well. Plus, it takes a long time to do research and get a good position and get a good investment in the first place. Have you factored in paying yourself to do this work? These and many other "unseen" costs will hurt your performance in the long run. But like I said, funds aren't for everyone. Some people actually enjoy doing due dilligence. Look at me, I run a fund. 
Well, regarding low liquidity on GLBSE and low market cap of assets there, it might be very risky to get lot of shares of one particular asset (500, 1000, 2000). You might not be able to sell them soon, or maybe even never at a decent price. Market is not established well and conditions might change a lot. So it may pay out to be flexible these days.
