CTA Startup

dabao91 · Sep 23, 2007

I hope this doesn't soond lazy, but I've been told by a couple fo CTA's that the have borrowed Disclosure Documents from other CTA's to use as a "skeleton" for their own. Simply being able to change the information around and performance numbers would sure be easier than typing up the whole thing from scratch..Any input?

Can you legally do that? Can the owner of such Disclosure Documents (including "advisory agreement" within DD) claim copy right?
Or Disclosure Documents (including "advisory agreement" within DD) are not protected by copy right?

nihao1234567890 · Nov 8, 2009

Quote from Aaron:

No, monthly performance fees haven't been an issue. We report our results monthly and provide monthly liquidity (chance for additions and withdrawals). Anything other than monthly fees would be confusing and difficult.

Imagine charging quarterly performance fees. What if January and February are good months and March is a down month but the quarter is up overall. Do you allocate the performance fee to January and February? Or does December get the performance fee hit and end up looking worse than it really was? If you allocate to Jan and Feb, do you then restate your results for those months (because you won't know your fees until the end of the quarter) or do you hold off reporting your Jan and Feb results til the end of the quarter? Too confusing and difficult. Better to just charge January's fees at the end of January, etc.

Is there any CTA who charges quarterly performance fees?

If you are a CTA and you charge quarterly performance fees, how do you calculate month performance capsule?

ChrisM · Nov 9, 2009

Quote from nihao1234567890:

Is there any CTA who charges quarterly performance fees?

If you are a CTA and you charge quarterly performance fees, how do you calculate month performance capsule?

You calculate monthly performance based on monthly performance fees even if you charge them quarterly.

nihao1234567890 · Nov 9, 2009

Quote from ChrisM:

You calculate monthly performance based on monthly performance fees even if you charge them quarterly.

I see. So you really still have to calculate fee and performance monthly. You just bill the client quarterly (list and add three month fees together).

Thanks.

ChrisM · Nov 9, 2009

Quote from nihao1234567890:

I see. So you really still have to calculate fee and performance monthly. You just bill the client quarterly (list and add three month fees together).

Thanks.

Exactly. You calculate monthly performance based on accounting standards and bill clients separately.

I know this one works, but there may be other ways.

nihao1234567890 · Nov 10, 2009

Quote from ChrisM:

Exactly. You calculate monthly performance based on accounting standards and bill clients separately.

I know this one works, but there may be other ways.

Other ways?

Would you mind to explain further?

Thanks.

ChrisM · Nov 11, 2009

Quote from nihao1234567890:

Other ways?

Would you mind to explain further?

Thanks.

As I have not tried any other way myself, just leaving the door open for any alternative solutions I may not be aware of.

startraitor · Nov 11, 2009

Copy away!

Quote from dabao91:

I hope this doesn't soond lazy, but I've been told by a couple fo CTA's that the have borrowed Disclosure Documents from other CTA's to use as a "skeleton" for their own. Simply being able to change the information around and performance numbers would sure be easier than typing up the whole thing from scratch..Any input?

Can you legally do that? Can the owner of such Disclosure Documents (including "advisory agreement" within DD) claim copy right?
Or Disclosure Documents (including "advisory agreement" within DD) are not protected by copy right?

yip1997 · Nov 11, 2009

Quote from ChrisM:

Exactly. You calculate monthly performance based on accounting standards and bill clients separately.

I know this one works, but there may be other ways.

Do you calculate performance before the fee or after the fee?

ChrisM · Nov 11, 2009

Quote from yip1997:

Do you calculate performance before the fee or after the fee?

General standard for calculating performance is net of fees i.e. presenting result after fees deduction.