Aaron- I congratulate you on your success, but highly recommend using a competent third party administrator. If you are content with running "friends and family" money then maybe it is not necessary, but if you truly desire to grow your business then you should really consider outsourcing this function. The reason is that investors (especially institutional) are hesitant to invest in a self-administered fund as the fund manager can manipulate the numbers (not saying you will, but that is the logic behind it). When investors see that you have a trusted administrator computing your NAVs, it gives them a "comfort factor". Furthermore, you should have a well known auditing firm audit the administrator's numbers as a further confirmation. FWIW....
Good point, Uncertain. Schindler Trading's Break-even analysis, for example, shows estimated expenses of: 0.3% for market data, accounting, auditing, and legal expenses 2.0% for management fee (to Schindler Trading) 4.0% for brokerage commissions and exchange fees These are offset by an estimated 3.5% in interest income, leaving a break-even point of 2.8%. Meaning we need to make 2.8% in trading profits just to have a flat, 0.0% return for the year. We don't pass on any offering or organizational expenses or third party selling commissions. Send me an email at Aaron@SchindlerTradingNOSPAM.com if you want to see our disclosure document in its entirety. Aaron Schindler Schindler Trading
But Aaron.... this is only going to get worse as the CME/CBOT merger creates one HUGE monopoly. And besides the fees, getting any response for customer service from the CME is already a huge headache...I can't imagine how much worse it's going to get after the merger. Bottomline: we've got some dumb people in charge of the CFTC. (SEC ? Even DUMBER)