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BTW Heech. Some time ago I believe you said that you were considering a CTA due to frequent request. Admittedly, that is one of the two main reasons for me choosing a CTA. Did you ever follow through on that consideration?

thanks. $25K isn't bad, I've heard much higher from the "big 4". I think you personally have done a great job demonstrating that a top pedigree, big 4 audit, and $25MM seed, aren't required to make a go of it. Luckily though, my CTA doesn't face the audit requirements that your fund does...

I'm assuming that you wouldn't be willing to give a ballpark cost for fixed fee service...? I also don't pay % of assets as the audit requirements are much different for me. Mine really charge me based on trade frequency. More trades equal more work for them. But they aren't as close to...

Fair enough, I suppose it is just semantics. Appreciate your input. :D

Yes, I'm sure that you (and most CPOs) follow the rules just fine. I'm not trying to harp on you guys, as my original intent was to operate as a CPO. The point is just that even though you are required to provide audits, they don't come directly from the auditor to the member. They would...

Can you give a bit more detail on that? As I understand it, section 1256 is part of only the capital gains section. TITLE 26 - INTERNAL REVENUE CODE Subtitle A - Income Taxes CHAPTER 1 - NORMAL TAXES AND SURTAXES Subchapter P - Capital Gains and Losses...

That is not a completely accurate statement. The typical CTA is a direct managed futures account. My clients, for example, maintain their own account with the FCM. They don't wait for me to supply quarterly statements, but instead have access to their account at any time. They can see what...

Yes, there is no pool to be a member of. As the GP in your fund, you don't have to charge a fee to get paid. You simply procure a disproportionately large amount of the profits. Those are considered capital gains to you as an individual and qualify for 60/40 tax. In a CTA, since each...

That isn't a fair analysis. Just because a long position is crazy, it doesn't necessarily follow that a short is prudent. When a ticker loses 90% suddenly and now sits at ~$4.00, what would be the incentive to short them? Even if you expect an eventual bankruptcy, it probably isn't a good...

Sorry Heech, it appears that I had selective reading on your last post too and you effectively answered the above question already. According to your earlier post, the accrued fees are actually removed from equity, thus avoiding the situation that I was referring to. That is very interesting...

I really should've made it clear also that I was referring specifically to starting a CTA in the above statements. The rules are different for a CPO, and even with some real money prop history, you'll still have to disclose 5-years of history from all accounts traded. In a CTA the 5-year...

Covestor and Collective2 really aren't the places that any serious investors look for talented management. Why would anyone go to either of those sites looking for profitable strategies when there are much more legit places like IASG, which has dozens of managed programs with much better...

I know that it isn't the point that you are trying to make, but you actually really have been doing a great job of ignoring reality. Your performance has actually been a quite spotty. You are expecting people to throw money at you based simply on your personal guarantee that you know what...

The relationship between equities and bonds is indirect at best. There is so much interference in the bond market right now, that I wouldn't for a second pretend to know what that relationship will be in the coming months. {edit} IMO, most of the retail money that would go to bonds, is...

Taking losses for me isn't really the question. In fact I see a pretty big problem in the concept of setting a predetermined stop loss point. Regardless of whether a position is moving for or against you, the trade should be continually managed. Part of that management is the...

One of the most common reasons people choose adjustable rates is that the average family moves every 7 years. A huge percentage of people these days plan on moving long before the 30-year mortgage would mature. The thought process is that they will get a 5/1 ARM with a rate that is about...

Ummm, not sure that I could disagree more. First, most of what people do on sites like C2 are all but useless. Any real money investors want to see real trade results. Second, you really don't want to use hypothetical results to promote your trading program. The SEC, NFA, CFTC, etc...

Ahhh... The only question I have with that is that accruing the fee, but not removing the capital changes the actual realized returns. Effectively lowering them with each passing month until the funds are actually removed. Am I missing something?

Thanks. So basically, you determine what the quarterly gain would be, net of fees, and then determine the proportionate compound monthly growth rate that would realize that quarterly gain. Sure seems a lot simpler just to charge monthly fees instead. :D

I'm curious... How exactly does a fund or adviser provide monthly performance data "NET OF FEES", when fees are charged quarterly? All funds are required to provide this data in a monthly and YTD format, yet the industry standard seems to be quarterly performance fees. Assume a 20%...