Managing Client Money

[TudorJones]

Hey guys,

those of guys who manage OPM.. I have couple of questions for you.

1) How do you manage new money coming in? don't you just let those new funds into your fund till the end of the month, quarter etc? Till then, do you keep those money in CDs etc?

2) How do you account for new money coming in top of old money? how do you keep tabs on calculating returns? is there a book that I can read where it will help me out with this?

3) For compensation (a % of your return, not the management fee), do you take out your cut at the end of each month? quarter? or year?

Any help much appreciated.

 

[ktm]

1) Have them wait til near month end to wire it. If it's a separate account, just wait until the first of the month to start managing it. You can certainly accept funds any day, but it just makes the accounting a bit harder.

2) Most basic software will do this for you. I think my accountant uses trade depot (about $1500 I think), and it handles the parsing and NAV prorations etc... If you are doing it manually, you would need to run the fractional month before the deposit and then another run at month end.

3) monthly

Quote from TudorJones:

Hey guys,

those of guys who manage OPM.. I have couple of questions for you.

1) How do you manage new money coming in? don't you just let those new funds into your fund till the end of the month, quarter etc? Till then, do you keep those money in CDs etc?

2) How do you account for new money coming in top of old money? how do you keep tabs on calculating returns? is there a book that I can read where it will help me out with this?

3) For compensation (a % of your return, not the management fee), do you take out your cut at the end of each month? quarter? or year?

Any help much appreciated.