Quadriga Superfund - Managed Futures

Quote from LRD:

It may sound stupid, but there is a major difference between a fund that is closed in the sense of taking no new money and one that is closed as in no longer operational. The former tends to imply success, that the manager has reached the capacity of that strategy. The latter suggests poor performance.

The point of doubt is marketing new funds on closed funds' performance. If new funds have the same strategy as closed ones it seems rather strange to have separate funds, as there are cost benefits in running all the money together. If they have different strategies then past performance isn't really a guide.

That's a general point btw, not aimed at Quadriga in particular.
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Yes, thats what they do. They say that they use EXACTLY the same strategy for the new funds.
 
Quote from Ninja:

Yes, thats what they do. They say that they use EXACTLY the same strategy for the new funds.
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Yes, they do this because when they offer these funds in different countries, they have different restrictions. For example, they can't offer the same fund in Europe as they do in the US. So they have to have two seperate funds, I don't know why this is so hard to understand.
 
May I ask a novice question?

Why do they start new funds based on the same methodology. There must be an administrative or marketing reason that I am not aware of. An earlier poster eluded to this as to why not leave the fund open to investors? I am considering quadriga and am a potential investor and this is a sincere question....not a stab in the dark!

Michael B.


Quote from Maverick74:

Yes, they are closed funds in that they are closed to the public, meaning they are not accpeting more capital. And again, no, they are not misleading investors by issuing new funds and using the performance of old funds, that is 100% illegal in both the US and in Europe. Look, you clearly have no idea what this company does. They have one computer model OK? Just one, this is what they trade off of, all their funds trade off of the same model, they are in the same positions, the only difference between all the Quadriga funds, is the amount of leverage they use and who can invest in them.

For example, the AG and GCT funds are in euros and in dollars but you cannot invest in them as an American. So they created the Superfund. And within the Superfund they created Class A shares which is the AG, and class B shares which is the GCT. The Superfund Caymen is based off of the GCT and is obviously for those who are looking for tax advantaged status. The reason they can infer to the performance of the AG and GCT funds with the Superfund is because they trade off of the same model, they are essentially the same fund, one is in euros, the other dollars.
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Quote from Maverick74:

Yes, they do this because when they offer these funds in different countries, they have different restrictions. For example, they can't offer the same fund in Europe as they do in the US. So they have to have two seperate funds, I don't know why this is so hard to understand.
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It's not, I understand it fine. I was just trying to explain the two types of "closed".
 
Is this the reason for closing a fund to new investors? or does each respective fund to each country close to new investors and start new streams?

Michael B.


Quote from Maverick74:

Yes, they do this because when they offer these funds in different countries, they have different restrictions. For example, they can't offer the same fund in Europe as they do in the US. So they have to have two seperate funds, I don't know why this is so hard to understand.
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Quote from ElectricSavant:

May I ask a novice question?

Why do they start new funds based on the same methodology. There must be an administrative or marketing reason that I am not aware of. An earlier poster eluded to this as to why not leave the fund open to investors? I am considering quadriga and am a potential investor and this is a sincere question....not a stab in the dark!

Michael B.
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Well, when they issue a fund, they do an offering through an investment bank for a certain amount of money, this is part of the SEC procedure. If the SEC approves the offering for lets say 500 million dollars, then that is all they can offer without having to file for another offering and go through the SEC process all over again. So once they raise 500 million, the fund is closed. See when you are a fund that is not registered, you can have unlimted capital. But when you do an offering, you cannot exceed your offering amount. It's very similiar to a private placement in a stock. You can't oversell an offering. Does this make sense?
 
Very clear and succinct...thank you so much....

Michael B.


Quote from Maverick74:

Well, when they issue a fund, they do an offering through an investment bank for a certain amount of money, this is part of the SEC procedure. If the SEC approves the offering for lets say 500 million dollars, then that is all they can offer without having to file for another offering and go through the SEC process all over again. So once they raise 500 million, the fund is closed. See when you are a fund that is not registered, you can have unlimted capital. But when you do an offering, you cannot exceed your offering amount. It's very similiar to a private placement in a stock. You can't oversell an offering. Does this make sense?
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Quote from Maverick74:

Yes, they do this because when they offer these funds in different countries, they have different restrictions. For example, they can't offer the same fund in Europe as they do in the US. So they have to have two seperate funds, I don't know why this is so hard to understand.
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I am talking about European funds that were closed and replaced by European funds. I don't know why this is so hard to understand.
 
Quote from Ninja:

I am talking about European funds that were closed and replaced by European funds. I don't know why this is so hard to understand.
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And which funds are you referring to?
 
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