Starting a fund / raising capital

Quote from doublet83:

Here you go.

As I've said before, this is my main IB account, reflects most of my assets and profits, but doesn't reconcile perfectly with the consolidated numbers I'm citing.
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What is your long/short percentage and leverage? April is on Par?
 
134% long, -76% short, roughly speaking in the long term portfolio. Net long exposure would be somewhat lower considering some covered call positions. Do have about another 50% long 50% short a strategy who's role is purely to improve tax efficiency, that I don't consider as part of this number, but should be minimal risk. Will sometimes take additional significant positions in an intraday basis in addition to the long term portfolio.
 
Quote from doublet83:

134% long, -76% short, roughly speaking in the long term portfolio. Net long exposure would be somewhat lower considering some covered call positions. Do have about another 50% long 50% short a strategy who's role is purely to improve tax efficiency, that I don't consider as part of this number, but should be minimal risk. Will sometimes take additional significant positions in an intraday basis in addition to the long term portfolio.
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So 2x leverage ang 2:1 long/short ratio

Interesting, I am using the same long/short ratio but 1x leverage, so 66% long and 33% short, and get half your return .

Which tool do you use to pick stock? Your average holding period for the short?

I cannot get 2x leverage at interactive broker. Approximately 1.3x maximum due to some small cap stock. Are you using broker that give you full 2x overnight margin? You only deal with large cap stocks?
 
Quote from doublet83:

Naturally I expect some degree of skpeticism surrounding my results. My hope in starting this thread was to gain some real insight in the feasibility of raising capital in a few years, rather than to prove how I have achieved my results or to brag about how great they are. I have achieved my results without taking on high levels of leverage or risk. This is reflected in the drawdown. It will become more evident if I sustain these results over a few more years. Part of the reason my results have been so good is because with a small amount of capital, it is easier to be very 'opportunistic' if you know what you're doing.

By trading my own capital, I am significantly increasing my short term income at materially greater risk. I am giving up the opportunity to work a very coveted carrer track in the investment management business. It is my belief that I can sustain my results and use them to raise capital in the foreseeable future. But maybe I am being too optimistic? I know even 2 or 3 years of track record is a pretty small amount of time, even if the results look great. But surely if I sustain these results for 5 or 7 years, then raising several mil should be no problem? I just want to get some advice from people who have gone through this process about how realistic it is to raise a few mil based on a few years of trackrecord based on similar results. Maybe it was too much to ask for real advice from knowledgeable people on this forum?
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Hi, doublet83.
Did you calculate your Sharpe ratio? Not everyone will will agree, but it could give a first estimate of the risks you are taking, though the low drawdown should hint to a nice value.
 
Quote from doublet83:

Naturally I expect some degree of skpeticism surrounding my results. My hope in starting this thread was to gain some real insight in the feasibility of raising capital in a few years, rather than to prove how I have achieved my results or to brag about how great they are. I have achieved my results without taking on high levels of leverage or risk. This is reflected in the drawdown. It will become more evident if I sustain these results over a few more years. Part of the reason my results have been so good is because with a small amount of capital, it is easier to be very 'opportunistic' if you know what you're doing.

By trading my own capital, I am significantly increasing my short term income at materially greater risk. I am giving up the opportunity to work a very coveted carrer track in the investment management business. It is my belief that I can sustain my results and use them to raise capital in the foreseeable future. But maybe I am being too optimistic? I know even 2 or 3 years of track record is a pretty small amount of time, even if the results look great. But surely if I sustain these results for 5 or 7 years, then raising several mil should be no problem? I just want to get some advice from people who have gone through this process about how realistic it is to raise a few mil based on a few years of trackrecord based on similar results. Maybe it was too much to ask for real advice from knowledgeable people on this forum?
More...

Hi, doublet83.
Did you calculate your Sharpe ratio? Not everyone will will agree, but it could give a first estimate of the risks you are taking, though your low drawdown should hint to a nice value.
 
Hi Doublet83,

We seed traders on your type of journey I only read the first and last page of this thread, check out RAPA if you are interested. We focus on risk adjusted returns and score your performance based on our own methodology.

Good luck.

Mike
 
Quote from arturo100:

Hi, doublet83.
Did you calculate your Sharpe ratio? Not everyone will will agree, but it could give a first estimate of the risks you are taking, though your low drawdown should hint to a nice value.
More...

Its about 5 on a LTM basis. Perhaps not as high as you would expect given significant monthly volatility of returns, mostly to the upside.
 
Quote from mickson:

Hi Doublet83,

We seed traders on your type of journey I only read the first and last page of this thread, check out RAPA if you are interested. We focus on risk adjusted returns and score your performance based on our own methodology.

Good luck.

Mike
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I've glanced at this several months ago.

The fact that I need to give away account statement authority or something like that is a deal breaker to me. I'm not about to do this for a stranger on the Internet.

Also, I'm not sure if there are regulatory issues to consider.

Finally, the amount of capital we're talking about raising via this channel seems uninteresting to me.
 
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