Hedge Fund New Money Troubles

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Quote from Ripley:

Would be true if all the trades were day trades. But my trades are held for much longer than that.
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No. You are either doing something unconventional or don't understand the business you are in.
 
Quote from newwurldmn:

No. You are either doing something unconventional or don't understand the business you are in.
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You don't understand the issue at hand.

If I'm a buyer of a stock upto $20, and the stock is at $25 in my portfolio, and my price target is $30, and I don't want to add more at $25 since the risk reward isn't worth it.

But, with the new money coming in, I would be forced to add more to a position I wouldn't want to add more.
 
Quote from newwurldmn:

Maybe Hos clients are visa, MasterCard.
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My client base include many institutions such as corporations and nonprofit entities. Unfortunately, I cannot confirm nor deny those entities since I would be violating my fiduciary trust entrusted upon me by my clients.
 
Quote from Ripley:

You don't understand the issue at hand.

If I'm a buyer of a stock upto $20, and the stock is at $25 in my portfolio, and my price target is $30, and I don't want to add more at $25 since the risk reward isn't worth it.

But, with the new money coming in, I would be forced to add more to a position I wouldn't want to add more.
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Oh... the trials and tribulations of having too much money...
 
Quote from Scataphagos:

Oh... the trials and tribulations of having too much money...
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Yeah.. New money isn't all that it is cracked up to be.

Anyway, I have figured out a way around it and thanks for all the HELP !!!
 
Quote from Ripley:

You don't understand the issue at hand.

If I'm a buyer of a stock upto $20, and the stock is at $25 in my portfolio, and my price target is $30, and I don't want to add more at $25 since the risk reward isn't worth it.

But, with the new money coming in, I would be forced to add more to a position I wouldn't want to add more.
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I understand the issue very well. You don't seem to.

Anyway, congrats on your work around. I'm sure your institutions, corporations, pension funds, etc. will be thrilled.
 
Quote from newwurldmn:

I understand the issue very well. You don't seem to.
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You think you understand the issue, but you don't. Just because the fund is mark-to-marketed doesn't mean I could just put in new money in there any time. It messes up my break even points and for a fund that is longer term oriented, it really messes up the performance compared to a situation where no new money was added.
 
Quote from Ripley:

You think you understand the issue, but you don't. Just because the fund is mark-to-marketed doesn't mean I could just put in new money in there any time. It messes up my break even points and for a fund that is longer term oriented, it really messes up the performance compared to a situation where no new money was added.
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Okay. I don't see how breakevens have anything do with it. But it's your fund and your clients.

What is your solution? What did your admin and CFO suggest you do?
 
Good Thread....

It seems to me Ripley, that you need to be selective when open enrollment is for new funds as others have suggested

or...

adapt your fund accounting methods to disclose several scenario's

ES
 
Quote from Ripley:

You think you understand the issue, but you don't. Just because the fund is mark-to-marketed doesn't mean I could just put in new money in there any time. It messes up my break even points and for a fund that is longer term oriented, it really messes up the performance compared to a situation where no new money was added.
More...

Yeah, the fund isn't being marketed correctly. You should hire an ad agency. EPIC thread for the archives. Thanks to Ripley for showing us all how the pros handle these scenarios.
 
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