Position sizing at fund level, how do you invest $50million?

Discussion in 'Index Futures' started by mizhael, Feb 17, 2011.

  1. Anybody has experience in running a fund here?

    Suppose you launch a fund with $50 million,

    how much do you use to trade futures/FX etc... and how much do you maintain as cash?

    Any pointers?

    I am trying to come up with a business proposal...

    Thanks a lot!
  2. MGJ


    Your best source of advice is: YOUR INVESTORS

    Ask them.

    Be completely honest. Tell them: "I have no bloody idea how to invest this $50 million, what do YOU think I should do?"

    They will admire you for your honesty and humility. They will also surprise you with the sagacity of their recommendations and advice. After all, they didn't accumulate $50 million of risk capital by being stupid. LISTEN to what they say and give it due consideration.

    These millionaires (your investors) hired you because of your expertise and your above-the-crowd knowledge ("alpha") . When you admit that you have none, and that you need help, they will find it endearing and encouraging. Ask the millionaire experts!

    Leverage the resources you've got! Very few people have access to the kinds of insiders that your investors represent -- treat it as an Unfair Advantage.
  3. Yeah and I am sure they will keep the $50 million with you after you tell them you have no idea what you are doing.


  4. okay let me be more specific.

    I do have a bunch of trading strategies... but those are at the strategy levels... the potential investors are businessmen and they may have idea about invest in this and invest in that... but they also don't have idea about how to divide capital into risky and risk-free capitals...

    At my strategy level, I used to run the basket of strategies targetting at a specific VaR every day... but then again, what's the mapping between daily VaR target and the amount invested as risky capital out of $50M?