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TSGannGalt
 

Registered: Jun 2004
Posts: 1978

 

12-06-06 01:51 PM

I keep on reading about newbs trying to sell their "spectacular" system to people.

So...

I'm selling my hedge fund.

- Office located in the NYC, US.
- Fund is in Cayman Islands.
- $100M under management
- Fund trades US Equities and Futures.
- Diversified trading models.
- Annual returned 30% for 5 years.
- Sharpe Ratio: 2.0.
- Margin/Equity 15%
- Fully Automated using FIX.
- 10 people staff. (5 24 hour Trade Desk, 1 Programmer, 1 Fund Admin., 2 Research, 1 Marketing/Sales)

... Now, how much would you buy this business.

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hedgefunds
 

Registered: Jan 2005
Posts: 68

 

12-06-06 01:54 PM

Shoot me a PM with your contact details if you are serious about selling. We know a few investors that are buyers of fund management companies.

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mschey
 

Registered: Jun 2002
Posts: 2357

 

12-06-06 02:00 PM

I would think your investors are in the fund because of the lead manager, once he/she leaves...there goes the fund assets, and then the investor is left with a shell and lots of overhead.

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TSGannGalt
 

Registered: Jun 2004
Posts: 1978

 

12-06-06 02:25 PM


Quote from mschey:

I would think your investors are in the fund because of the lead manager, once he/she leaves...there goes the fund assets, and then the investor is left with a shell and lots of overhead.



The working staff, developing the trading models, integrating the IT, and keeping the fund's compliance in line are still there.

The quality of the fund wouldn't be affected.

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Tuneman
 

Registered: Oct 2006
Posts: 162

 

12-06-06 03:12 PM

aahh the old cayman island tax trick, never ceases to bring a smile to my face.

God bless the USA and our idiotic tax laws.

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Joab
 

Registered: Jul 2006
Posts: 2228

 

12-06-06 03:15 PM

I have a deal for you!

If I can get your fund to 100% annual.

Will you give it to me in 5 years ?

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