Your math is not even close. You forgot about the cost of carrying a $4MM margin balance. Nothing is free. I can get the same yield in a 6 Month Treasury with Zero risk to maturity.
Does anyone have any good contacts at Deutsche Bank, CSFB, Merrill Lynch, Morgan Stanley, or other big brokerages, investment banks, or institutional broker that I can place my trades with over the phone for my hedge fund? I wonder why anyone running a hedge fund and therefore with such prominence and experience and presumably such contacts! would believe it is possible to find here on ET someone better to advice him on serious deals as a $5mil investment. I run a fund, $5 million, looking for an investment bank broker(Deutche Bank, CSFB, Merryl) to help me with trades, ipo's, research, ideas, etc. It's a bit like offering the post of cfo for your company placing an ad on the local newspaper... Amazing.
i think gator got hooked up with these guys... "hedge fund that specializes in ipo's is looking to take on indiviuals to optain contacts with brokergae firms world wide reatil brokerage exp a plus please contact us if interested" they were running ads some time ago. is that so?