This week was kind to the the two accounts I manage. In its first week the Σ1 proprietary trading fund eked out modest gains; $25.00 invested last Friday has a NAV of $25.04 today. The Crazy Ivan Account (CIA) is showing a nice $23,473 balance.
I already had one person express interest in investing in Σ1. I had to inform him that that was unlikely to happen in 2010. I have a lot of reading and researching to do first. Probably a visit or two with my LLC’s accountant and perhaps a visit with my lawyer who may have to recommend another lawyer more specialized in the industry.
Until then I must, sadly, say “no”.
But I can map out a tentative outline of possibilities. Here a few potential thoughts.
- Initial share reference price, $25.00, dated Sept.17, 2010.
- Minimum initial investment: $10,000.
- Fine print: Σ1 is not a mutual fund. It is more aptly deemed a proprietary trading group (or entity) for experienced investors and is for risk capital only. The types of risks associated with this investment group fund go well beyond those of established mutual funds.
- Long-term investment is encouraged. In order to discourage short-term trading the following penalties will be assessed:
- 5% fee for redemption of funds held less than 181 days.
- 2% fee for redemption of funds held less than 365 days.
- 1% fee for redemption of funds held less than 2 years.
- No redemption fee for funds held >2 years.
- Redemption requests (received by email) will be honored by mailing a check within 45 days of receipt. Notional NAV of redeemed funds will not be lower than the minimum of the 5 closing NAVs in the 5 business days after receipt of the redemption request.
- Redemption requests must either a) Exceed or equal $5000, b) 100% NAV of portfolio. Redemption requests of $5000 or more that have lower NAVs will receive 100% liquidation as per terms above.
- Redemption requests will be non-revocable, unless written special dispensation is granted by fund manager.
If you have read this far, apologies. This is very dry stuff, and very speculative at this juncture. Thanks for reading.
Balhiser.com 