Starting a fund / raising capital

Quote from Traveler:

I'll bet the OP's numbers are better than most forum members on an unlevered basis.
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That's great, but it should be backed-up when someone is claiming a level of performance. He states it in half his posts but doesn't produce. Nothing to claim then no need to post performance.
 
Quote from Epic:

Setting up a an LP/LLC or LLC/LLC is a very simple task. So they are pretty much charging you $3-5K for almost nothing.

The only purpose of this "fund" is to hide the fact that it is really just a prop account.
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Ok, so a LLC can be set up as an 'Advisor/Management' entity where you pay yourself a salary. The salary is subject to Self-Employment tax, but provides K401 and Health Insurance Benefits. Fine.

Another LP or LLC is set up as the trading account and generates only unearned income. What tax rate is this subject to? The corporate tax and individual taxes are not so far apart... Are profits that are rolled over into the entity for another year taxed the same as withdrawn profits. What is the effective tax rate of the trading account?

Great thread.... thanks.
 
Quote from gmst:

I also thought it is a scam but nonetheless the discussion that happened in this thread was quite informative. So, thanks to all the participants and especially to OP to launch such a well-thought out scam :D
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As long as no one is fooled it's ok... :-)
 
Quote from doublet83:

Max drawdown on a monthly basis was about 5.8%. I believe max drawdown would be in the 7 or 8% range.

Screen shot attached represents my main account, not including a secondary account and IRA accounts.
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Why is NAV decreasing during Dec to Jan even though the return is positive?
 
Quote from doublet83:

Returns are 86% in 2011, 155% in 2012, with max drawdown of 8 to 10%. Year to date 2013 has been amazing, at +53%. I am particularly pleased with this given this was achieved only about 15% of profits coming from my non scaleable strategy, much less than prior years. Furthermore returns were achieved with less concentrated bets than prior years. I would say that I am quite surprised how well things are going, and that these returns are almost certain to be unsustainable.

I have posted a screenshot from IB's portfolio analyst before. I don't mind defending these numbers, I am quite proud of them. I don't really get a chance to brag about my returns other than to my mom. Bragging here anonymously is one of the few opportunities I get.
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Really great job, and comments from heech, epic etc.

Good luck with setting up the business.

Doublet posted his ib portfolio analysis...to me it looks darn real as can be. Hope you can continue!
 
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.
 

Attachments

Quote from QuantWizard:

Why is NAV decreasing during Dec to Jan even though the return is positive?
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Without looking at the old screen shot again, I'd assume its because of withdrawals. Comon I think a Quantwizard would be able to figure that out =P
 
This thing says I have a sharpe ratio of 4.8, with mean monthly return of 10.15%, and stdev of 7.32%. I've long believed sharpe to be a useless metric for me and typically an overused metric for most strategies, as it assumes returns to be normally distributed and does not account for various unquantifiable risks.
 
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