You don't understand the issue at hand. If I'm a buyer of a stock upto $20, and the stock is at $25 in my portfolio, and my price target is $30, and I don't want to add more at $25 since the risk reward isn't worth it. But, with the new money coming in, I would be forced to add more to a position I wouldn't want to add more.
My client base include many institutions such as corporations and nonprofit entities. Unfortunately, I cannot confirm nor deny those entities since I would be violating my fiduciary trust entrusted upon me by my clients.
Yeah.. New money isn't all that it is cracked up to be. Anyway, I have figured out a way around it and thanks for all the HELP !!!
I understand the issue very well. You don't seem to. Anyway, congrats on your work around. I'm sure your institutions, corporations, pension funds, etc. will be thrilled.
You think you understand the issue, but you don't. Just because the fund is mark-to-marketed doesn't mean I could just put in new money in there any time. It messes up my break even points and for a fund that is longer term oriented, it really messes up the performance compared to a situation where no new money was added.
Okay. I don't see how breakevens have anything do with it. But it's your fund and your clients. What is your solution? What did your admin and CFO suggest you do?
Good Thread.... It seems to me Ripley, that you need to be selective when open enrollment is for new funds as others have suggested or... adapt your fund accounting methods to disclose several scenario's ES
Yeah, the fund isn't being marketed correctly. You should hire an ad agency. EPIC thread for the archives. Thanks to Ripley for showing us all how the pros handle these scenarios.