What is to tell an investor when looking for funds?

Quote from heech:

Well, I don't pretend to know all, but I do have $22mm in AUM (starting from $2 million 3 years ago)... the bulk of which are, of course, coming from wealth investors, fund of funds, and family offices. So, I think I have some credibility here.

And yes, of course they will want to know all of the above, but probably a good 80% of the fund managers out there are doing enough to get check-marks on all of the above.

- independent third party admin? check.
- "funds safe?" check.
- "no lock up period? check.
- credible independent auditor? check.
- credible FCM or prime broker? check.
- "good character"? check.

Seriously, how many fund managers are getting crossed off the list for not being "safe", at this point?

The real question is how do you separate yourself from the at least 80%+ of all fund managers who are professional enough to meet the above standards? How do you gain assets beyond what they're doing? By talking about exactly what you do as part of your investment process.
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$22M AUM is very good from any starting point. You are doing better than most. Good luck to you.

1245
 
Quote from heech:

I think every investor understands that a manager will keep private the "specifics" of their secret sauce. The exact parameters of what makes up your secret sauce should rightly stu private.

But you should be able to articulate:

- how you came about your secret sauce,
- what can your historical results be used to prove about your secret sauce,
- what does your secret sauce taste like - what are the market conditions in which your sauce does well/poor, and why,
- what are the basic inputs into your secret sauce (or at the very least - what do you ignore),
- how do you go about updating your secret sauce over time,
- why hasn't anyone else derived the secret sauce - what's unique about you or your approach.

Frankly, anyone unwilling to share the above will be seen very skeptically.

I like to think every investor I talk to walks away understanding what (I think) my edge is, and exactly what drives returns historical/future. They will draw their own conclusion as to whether they agree.
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Is anyone on this elite trader registered as a CTA r CPO ? Where can we learn more about you DDoc's if so >

I am not....
 
Quote from optionbull:

Is anyone on this elite trader registered as a CTA r CPO ? Where can we learn more about you DDoc's if so >

I am not....
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I am a registered CTA / CPO, and I believe several others here are as well.

I'm really not here to raise money and/or gain publicity for myself, just wanting to participate in the conversation + share experiences with others. But if you're extremely curious (or just want to verify if I'm real), you can send me a private message.
 
Quote from optionbull:
Is anyone on this elite trader registered as a CTA r CPO ? Where can we learn more about you DDoc's if so >
I am not....
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Years ago I thought I might want to manage money, so I registered as a CTA. I had a track record and a trading style, but wasn't really clear on how I would build an investor base. What I discovered was that I was the world's most inept salesman, so I withdrew my registration.

Lately I have been again contemplating the question: Is money management something I would want to do? The challenge and potential reward sounds nice, but the marketing and administration do not. Anyway, that is why I have been following this thread and a couple other recent ones on this topic.

Regarding the DDoc, I created my own after reading maybe 7 or 8 other traders' DDocs. It's not all that hard, nor are the registration steps. The NFA can give you the details.
 
Quote from rwk:

Years ago I thought I might want to manage money, so I registered as a CTA. I had a track record and a trading style, but wasn't really clear on how I would build an investor base. What I discovered was that I was the world's most inept salesman, so I withdrew my registration.

Lately I have been again contemplating the question: Is money management something I would want to do? The challenge and potential reward sounds nice, but the marketing and administration do not. Anyway, that is why I have been following this thread and a couple other recent ones on this topic.

Regarding the DDoc, I created my own after reading maybe 7 or 8 other traders' DDocs. It's not all that hard, nor are the registration steps. The NFA can give you the details.
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thanks

if your in the enegy trading/risk management space let me know.
 
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