2012: I earn $0.5M from 5M PnL (10% commission, $20M capital from my hedge fund partner) 2013: I earn $1M from 10M PnL (10% commission, $20M capital from my hedge fund partner) 2014: I hope to find some investor to get $20M for one month at a cost of $2M, then I can make $8M instead of $1M assuming I can still make $10M PnL. Is it that difficult to understand?
Thanks for the info. So I agree that I should not look for hard money lender any more. Instead, I should set up a hedge fund myself. But I am wondering the impact of the special capital usage pattern (2M in 11 months while 20M in one month) . Any one knows good forum for hedge fund newbies? Can I do it myself (with help from professionals of course) or need to find a partner with MBA degree?
Yeah, it is. It appears that you want to take a flier on some expiration-trade (short vola). Let's treat it on the merits (none). Nobody is going to give you $20MM unsecured. So you're going to earn $10MM on a 30-day term. First you stated you were going to bid on an auction, now it doesn't matter when, but how. Jason, you really need to stop here as all of this is now of public record. You're doing yourself more harm than good.
Let's assume it's all true: Your ignorance of the business you are in is astounding. You are going to seek capital to run risk 10x larger than you are used to. Moreover you think said investor will take a 10percent return (if it all works out) and all the downside. 10 seconds of due dilligence and they will realize they can invest with your friend and get 80percent of the upside and have much less operational and audit risk.