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Jay_Ap
Registered: Jun 2012
Posts: 29 |
08-20-12 01:40 AM
Quote from darkhorse:
Sure, PM me or Mike and we can get the conversation ball rolling...
Cool. Will do. Thanks guys.
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protrdaer20000
Registered: Sep 2012
Posts: 1 |
09-06-12 06:30 PM
Hi SgtSlottter:
I need to talk to you about something important.
Can you please PM me thanks.
Quote from SgtSlottter:
This SEC bust is about all the unregistered sub 'prop' groups. Alchemy itself may have had some functioning as more of an allocator type, but the rest of these entities are simply unregistered LLCs. Fredericks is the same guy from Tuco Trading. These are all unregistered, and in these cases, offshore BDs.
So the same goes for allocators, offshore / non-us unregistered prop groups, and of course, official BDs with crappy financials. Most are safe, but there's plenty of public info out there.
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Maverick74
Registered: Mar 2002
Posts: 17316 |
12-26-12 10:31 PM
Quote from Mike_McDermott:
We have a contact that might fit the bill.
Their goal is to fund emerging managers (small funds, CTAs etc) with a monthly profit split and monitor them for 12-18 months.
The group partners with a multi-billion dollar institutional allocator as a "farm club" to identify key talent.
After the 12-18 month period, the best managers are eligible to receive a traditional allocation (typically 2% management fee, 20% performance allocation) into their fund or a separately managed account.
The group does require the manager to put up some of their own risk capital - that's just the way their program works. It's a great way to boost assets under management (AUM) and begin working with an institutional-grade investor.
If you want more details, shoot me a direct message and we can chat...
Any update on this? Anyone from ET take you up on this offer? What's the latest?
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dealmaker
Registered: Dec 2006
Posts: 607 |
12-26-12 11:56 PM
Quote from Mike_McDermott:
On the surface, I would agree with you. The leverage simply for the sake of leverage isn't worth the risk.
But in this case, the funding partner is backed by a multi-billion dollar allocator who is looking to fund traders from a more traditional standpoint (typically 2% management fee 20% incentive allocation).
The program is really just a "farm club" allowing the institutional allocator to evaluate the manager for a limited time period with minimal risk.
Other benefits to the trader include higher AUM (it's easier to raise additional capital when you already manage a material amount), and the credibility of having an institutional investor that has placed capital with you. Now the trader can go to a small family office and say that this institutional investor has placed $XX million into the strategy.
From a business standpoint, the methodology makes a lot of sense. Sure, it's not right for everyone, but for the manager who can control risk and generate consistent profits, it is a tremendous opportunity.
How is this different than what Mercenary Trader & RAPA are offering? RAPA guy on another thread said they will share the losses...
ps I am not associated with either.
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