Bonus-Whoring-Funded-Trend-Following-Fund. Opinions please:

[Baulucky]

I would have to add that if the fund is very successful, it is very likely that it will become too big for its own sake, and therefore, to keep performance up, it will be forced to distribute earnings if the funds cannot be put to work successfully once a large size is achieved. I'm happy to report though that there are several, similar, funds, managing in excess of $5 Billion.

[Tony Corbett]

Silly me only counted 19 years not 20 years.

Each investor gets $850K

Organiser gets $388M (a lot more if he revinvests his fee back into the fund)

Probably screwed up again but the order of magnitude between investor and manager returns is interesting.

[Baulucky]

BRn=BRo x 1.5**20=$2,000x3325.26=$6.650.513.50

[daveymck]

And what is the advantage of giving my money to you instead of one of the many other investment companies apart form the fees etc what makes you

a) think you can beat the market and

b) think you can beat some of the investment trusts out there ie the ones making profits,

c) what measures are in place to ensure the moeny is safely invested and not in your bank account.

D)What measures would be in place to ensure that we were paid out in x many years time (ie who is going to keep track of all the names and adresses etc)

E) What is your background and history in investing.

[chesspain]

[ QUOTE ]
...once the fund has had a 100% increase (estimated to happen between 2-4 years)...


[/ QUOTE ]

I stopped reading here.

[Baulucky]

a-I think I can, after several years of testing and trying things that didn't work. I can't guarantee anything though.

b-I may not be able to, but I'll give it my best.

c-I will have control over the investment decisions (They are computerized anyway), not the money. I.e.: There will be a board of persons/companies authorized to disburse the funds when the time comes. I will probably use CITCO, the same Curazao Co. that oversees the Funds for Mr. Soros. A Google may bring more info on CITCO.

d-That would be a question for CITCO and the investors. I'll ask them how do they do it with other Funds.

e-I'm an ex- CBOT floor trader, ex- FX Bank Trader. My history as a market maker is OK, but not outstanding. My history in trend following is mainly hypothetical testing, although I've been trading a personal account for 3 years (Too short) with so-so results so far.

I hope that answers your questions.

[irongarden]

[ QUOTE ]
To diminish risk, one MUST participate in many markets, as you do not know in advance which one is going to trend.

[/ QUOTE ]

I don't think you can use the phrase "diminish risk" in good conscience after talking about 50% return rates. No fund manager anywhere has had a long term return that is mroe than 20%. The only way you can see 50% returns is to do the investment equivalent to the roulette wheel and to get lucky for a long time running.

[Baulucky]

[ QUOTE ]
No fund manager anywhere has had a long term return that is mroe than 20%.

[/ QUOTE ]

This is incorrect. Do a google search for "Managed futures Funds" and see for yourself. It depends a lot on leverage.

[Stupendous_Man]

[ QUOTE ]
I will teach you how to get $5,000 in casino and/or poker whoring bonuses

[/ QUOTE ]


Is this expected to be the "newbie's" seed money and that's why you're teaching them how to whore $5M for their investment? I believe I read it correctly, just making sure.


[ QUOTE ]
and you get to invest $2,000-$5,000 maximum invested amount per person, for the LONG TERM of 15 years minimum in the fund, with a provision that you can withdraw your initial investment once the fund has had a 100% increase (estimated to happen between 2-4 years), the rest RIDES for 15 years. (Or you could choose to let it all ride).

[/ QUOTE ]


Basically, you're selling LP interests in an offshore hedge fund, right? First time I've seen the lock up period be tied to a return vs. a set time frame. Most have 1 yer lock ups and then the distribution/withdrawal programs vary. Some have quarterly others semi-annual and a few have annual only.


[ QUOTE ]
What's in it for me: I keep 25% of the annual profits, if any, as performance incentive. No management fees. No junk fees.

[/ QUOTE ]


Haven't run any numbers, but this set up is kind of interesting. Most funds I've looked at have a 1% annual management fee with a 20% profit participation if the return exceeds a certain benchmark. Are you planning on keeping your share of the profits in the fund?


[ QUOTE ]
The idea is to get into a high Reward long term situation with an initial amount of money that none of the investors would be sweating over it, as it was acquired thru low-risk whoring and required only some investment of time.

[/ QUOTE ]


The idea of using whored funds as your seed for this investment is interesting.


[ QUOTE ]
At a 50% yearly return

[/ QUOTE ]


What the heck kind of investments are you planning on making to generate this kind of return? From what I've read, the fund would be very open to do anything (long/short, commodities, derivatives, arb, event-drive, etc.). That requires a lot of expertise.


As a whole, the concept sounds interesting, mostly b/c the seed money is coming from whoring and you're looking for min/max investments in the 4 figure range (VERY atypical for funds). While this peaks my interest, I'm already looking to roll part of the br into real estate and possibly more into the markets. Best of luck!

[Baulucky]

[ QUOTE ]
Is this expected to be the "newbie's" seed money

[/ QUOTE ]
Yes.

[ QUOTE ]
Basically, you're selling LP interests in an offshore hedge fund, right?

[/ QUOTE ]

Yes. With the provision that they will not withdraw early and shoot themselves in the foot. Also, no redeems for 15 years bring my administrative costs and time wasted to near zero.

[ QUOTE ]
Are you planning on keeping your share of the profits in the fund?

[/ QUOTE ]

Mostly.

[ QUOTE ]
The idea of using whored funds as your seed for this investment is interesting.

[/ QUOTE ]

Yes. That's the crux of the idea: Low risk for very long term, with little sweat capital. This brings the emotional stability to go for the distance. Only time risk for me as well, and strong emotional control, knowing that the risk to all involved is minimal, even if the worst happens.

[ QUOTE ]
What the heck kind of investments are you planning on making to generate this kind of return? From what I've read, the fund would be very open to do anything (long/short, commodities, derivatives, arb, event-drive, etc.)

[/ QUOTE ]

Basically leveraged commodity futures. A good trend following system has a CAGR/MAXDD of about 2.0 (compounded annual gross return / Maximum drawdown). Therefore adjusting leverage one can achieve whatever level of flucs one desires. I chose a 30% maximum down fluc.

[ QUOTE ]
That requires a lot of expertise.

[/ QUOTE ]

Not really, just the right kind. Once you've done all the legwork, the computer generates the orders daily or weekly as the market trends develop. Extremely boring, and extremely profitable.

[ QUOTE ]
you're looking for min/max investments in the 4 figure range (VERY atypical for funds).

[/ QUOTE ]

I have not seen ANY other solicitation of funds this low. I want it to be low for everyone involved, so that nobody will be psychologically affected in the short term.

Thanks for your comments.