Didnt trade the report this morning, I chose sleep instead.
Yeah, I think setting up some type of fund along these lines is a great idea. Wed have to look into what type of regulations there are though and all that legal mumbo jumbo. Perhaps an added wrinkle that I live in Canada as well...
Although perhaps that would strengthen the funds appeal because then we could market it as international.
Wed also have to decide how to position it. I like your idea of targeting younger people. If that were the case, we could position the fund as essentially a money market fund/savings fund. Basically as a high interest account where your principal is guaranteed. Minimum deposit is $500 (or whatever amount) and we offer 3%-4% per annum or something along those lines. Then, behind the scenes (heh heh
) we leverage the power of, well, leverage
and use our margin on a platform such as Currenex and start making gobs of money with other peoples money. If we could average double-digit percentage gains per year (especially if we focused on a carry trade strategy) and only had to pay out 4% that would be alright... The three of us could be the fund managers and basically keep the rest! After all, we are the ones running the fund, making the trades and taking on all the risk, especially if we are guaranteeing principles.
Even 500 people @ $500/person = $250K. Use $100K of that for $10M @ 1% margin on a carry trade and that would be some decent income. Use another $100K for trading $10M lots and net about 50 pips a month or so thats $50K/month! As for the other $50K, whatever... Ill do some commodity trading with it and will just try not to pull an Amaranth
I know a couple day traders here who we could probably recruit if we wanted to play the stock market as well... theyre far better at it than I
I also know a bond trader who works for a large capital management firm here in town...
Anywho, just thinking out loud here, wed need to come up with a solid plan and look into the details.
If we are serious, we can perhaps call on my wifes expertise. She is currently a Director of Strategic Business Development. She knows how to write strategy like the back of her hand. She writes corporate business plans, handles corporate governance and finance, shareholder agreements, etc. etc. She also was a Director of Marketing previously, so would know how to market such a fund Im thinking. If nothing else, she is an excellent business plan writer and could no doubt assist us on that side of things.
My concerns would be regarding things such as legal issues, becoming a corporation, taxation, SOX compliance, regulations, etc. I honestly know nothing about the business side of the financial world in this repsect.
And if we are serious about this, then perhaps taking it offline, or at least chatting via e-mail would be more appropriate than on an open forum, giving away our secret plans for world domination!
