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Machete Visor
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Posted - 2010.08.02 21:24:00 -
[1]
An idea has been burning a hole in my head for the last 3 or 4 days and I've decided to execute on it.
I will be launching 3 funds, each with a different strategy, return characteristics and investor type. In total, there are 6 tranches of investments available.
First about the funds, then about me
1. Station Trading Opportunity Fund
This fund is essentially a recreation of my original first fund (seen here). In brief, it is an actively managed station trading fund that focuses on medium volume/large spread items that are fairly liquid. The fund returns around 100% in a month (2% a day), depending on volume, etc.
Equity Size:3B (1B from me, 2B from 3rd parties)
Loan Size:4B (all third party)
Loan Rate:5%
Term of Investments:Perpetual, but tradable in this thread.
Investors from my first fund have the option to carry over 50% of their investment into this fund. Otherwise it is first come, first serve.
Asset Management Fees:This is an actively managed fund that takes a lot of time every day. It is also very profitable. The management fee will be 3% of assets under management (or 210M per month).
Investment Restrictions: No trading at Jita, no minerial or PI investments. Ships/goods under 500M ISK, hauling within 2 jumps of the station or otherwise using fully collateralized couriers. Only trading items with both buys/sells active. Target >10% spread for each product.
Q&A:
Can the fund afford a 3% AUM fee and 5% interest on 4B? Yes. In my prior fund, the total amount was 7B and generated 3.5B in profit easily each month. With 5% interest on 4B and 3% AUM fee, that is ISK out the door of 410M each month, leaving estimated 3.09B in profits to be sent to equity holders.
Why 5% interest rate?
There is no risk to principal in the fund from its strategy, frankly 5% is high compared to some of the other offerings I have seen in these forums. The only risk is from fraud, when I will address in section 2.
Total 3rd Party Money: 6B
2. High Value Opportunity Fund
This fund is a new concept. It will invest only in ships/items worth >500M, mainly through contracts, but some items in stations. The approach is the same as the first fund - spread trading - just more illiquid. Returns on these items can be anywhere from 10% to 100%.
Equity Size:2B (1B from me, 1B from 3rd parties)
Loan Size:2B (all from 3rd parties)
Loan Rate:7%, due to additional strategy risk.
Term of Investments: Perpetual, with an optional put from investors & lenders each month.
No hauling. No manufacturing, etc.
Fees: Fees will be charged at 10% of profits distributed to equity holders. There will be no recurring AUM fee or periodic charges. Only fees on profits, as they are paid.
Total 3rd Party Money: 3B
3. Highly Liquid Growth Fund
This is an improved version of the fund I launched here. This is a speculative fund that will invest in highly liquid commodities/goods, with the view of profiting from changes in price (i.e., NOT spread trading).
....continued.... (pls do not respond to this message)
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Machete Visor
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Posted - 2010.08.02 21:42:00 -
[2]
This fund will invest in highly liquid commodities in Jita.
Equity Size: 1B (100M from me, 900M from 3rd parties)
Loan Size: 1B
Loan Rate: 10% (due to increased risk)
Term: 1 month. Then the fund will be wound up and all cash distributed, only to start again.
Asset Management Fees: None. My profit will come from the 100M investment.
Total 3rd Party Money: 1.9B
Grand Total 3rd Party Money: 10.9B
Mechanics:
Each fund will have a separate corporation. Equity holders will receive shares and dividends. Lenders will be recorded in this thread and paid accordingly.
Loan trading can occur in this thread. Equity shares are transferrable in game.
50M min investment for equity, 500M cap for 1 investor in each fund.
100M min for a loan, no cap.
About me:
I have linked the offerings I've run throughout this post. I will NOT accept any ISK until they are all wrapped up and resolved. I wanted to get this started because it will take some time to setup.
I will create two alts to run the 2nd and 3rd fund. Machete will run the first. The 2nd and 3rd funds are not skill heavy.
The big question: How do we know you won't walk away with 10.9B in investor money?
If you look through the various offerings, you'll see I am currently entrusted with 5B of outside money, and have previously return 4B in dividends, plus some interest. I will return another 2B (est) in dividends and will return all 5B to original investors. In other words, if I wanted to walk off with 10.9B, I could have already done it.
Instead, my motivation, as original stated, is to do something unique and create a little niche in Eve world. You'll also note that asset management fees should cover the fee on this account, whereas currently I am receiving none.
As always, if you don't trust me, do not invest. And only invest what you have hte ability to lose.
I think each of these 6 investment opportunities are good relative to the returns being offered elsewhere, with the prize being equity in the 1st fund.
Please fire away.
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Trebor Whettam
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Posted - 2010.08.02 22:05:00 -
[3]
I would like to reserve a 250 mil isk investment for each of the three funds (total of .75 bil).
I like you style, and I hope you have fun with the new investment strategies you're going to try.
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Alacta Lithia
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Posted - 2010.08.02 22:20:00 -
[4]
I would like to reserve 500mil for each of your 3 investments. (1.5 Bil total)
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Pippgirl
Caldari
Skies Tis Moiras
Amici Noctis
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Posted - 2010.08.02 22:42:00 -
[5]
would like to reserve 150 mill for each of the funds, 450 mill in total.
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Lecherito
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Posted - 2010.08.02 22:47:00 -
[6]
hmmm?
-L
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Cista2
Hydra Investment Fund
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Posted - 2010.08.02 22:53:00 -
[7]
The guy has perseverence.
*tips hat**
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"Signatures" chatroom for traders / Hydra Investment Fund |
Alain Kinsella
Minmatar
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Posted - 2010.08.02 23:36:00 -
[8]
500 Mil for first fund (re-launched STOF). This includes the carry-over.
Not interested in the other two, for now. :)
--A_K
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Lucyna
Minmatar
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Posted - 2010.08.02 23:41:00 -
[9]
Wasn't the first fund a bit weird from the getgo? How did all of that go?
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Alain Kinsella
Minmatar
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Posted - 2010.08.03 00:03:00 -
[10]
 Originally by: Lucyna
Wasn't the first fund a bit weird from the getgo? How did all of that go?
I can't comment on the actions of the original 2nd fund, but my TLDR for STOF1 - invested 250 Mil, paid 250 Mil twice.
So investing 500 Mil (for me) is 'relatively' safe; I'm just rolling one round of profit back in. Worst case, I'm back to before STOF1 launched. *shrug*
---
Machete, if you don't mind a slight derail - is the RL Market acting like molasses right now influencing your activity here? 
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Machete Visor
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Posted - 2010.08.03 00:28:00 -
[11]
Originally by: Alain Kinsella
Originally by: Lucyna
Wasn't the first fund a bit weird from the getgo? How did all of that go?
I can't comment on the actions of the original 2nd fund, but my TLDR for STOF1 - invested 250 Mil, paid 250 Mil twice.
So investing 500 Mil (for me) is 'relatively' safe; I'm just rolling one round of profit back in. Worst case, I'm back to before STOF1 launched. *shrug*
---
Machete, if you don't mind a slight derail - is the RL Market acting like molasses right now influencing your activity here?
The other funds are all linked in my posts (for whomever asked).
Alain - I took you 250M rollover, that only left 100M of non-reserved equity in the first fund, so I marked you down for it and 150M waitlist.
Real life has been busy, annoying for the summertime.
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Vandoxarr
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Posted - 2010.08.03 01:47:00 -
[12]
Hey again Machete, wow this filled up fast ! grats.
Ill take the remaining 100 million in fund 2. Pretty sure that is all that is left over ?
Put me down for a further 200 million spread if anyone pulls out or gaps open up.
Best of luck.
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Machete Visor
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Posted - 2010.08.03 02:16:00 -
[13]
Originally by: Vandoxarr
Hey again Machete, wow this filled up fast ! grats.
Ill take the remaining 100 million in fund 2. Pretty sure that is all that is left over ?
Put me down for a further 200 million spread if anyone pulls out or gaps open up.
Best of luck.
Correct, i put you in.
There is a ton of debt also out there. Not bad returns for ISK otherwise sitting around..
just fyi for investors, my alts are still viewable on eveboards. as originally disclosed in the STOF fund thread,
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Trebor Whettam
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Posted - 2010.08.03 02:21:00 -
[14]
Machete, could you clarify the status of your "double or nothing" fund?
It seems implied here that all of your previous debt will be paid off prior to opening these three new funds, however your last post in that thread sounds like you're going to do a slow buyout.
This 2 bil swing makes a pretty big difference.
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zindeen
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Posted - 2010.08.03 03:19:00 -
[15]
Machete you have my roll up sent you a email in game. As well as put me down for 300M for fund 1 if there is a spot that opens up (i believe that will be my 500M cap.)
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Machete Visor
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Posted - 2010.08.03 03:23:00 -
[16]
Originally by: Trebor Whettam
Machete, could you clarify the status of your "double or nothing" fund?
It seems implied here that all of your previous debt will be paid off prior to opening these three new funds, however your last post in that thread sounds like you're going to do a slow buyout.
This 2 bil swing makes a pretty big difference.
I won't be taking ISK until all other funds are wrapped up. I think it'll take a week or so to liquidate everything (both funds).
The double or nothing fund is 1B is 3rd party money. It will all be returned.
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Celi Annor
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Posted - 2010.08.03 06:19:00 -
[17]
I would like to roll over 50% of my investment from your original fund.
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Saidin Thor
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Posted - 2010.08.03 15:14:00 -
[18]
I invested in the expansion of your station trading fund, and was wondering if I was eligible for rollover (investment was 500m, so 250m rollover). If I am, please put me down for 250m in the station trading fund, and 250m for the (2) High Value Opportunity Fund Loan.
If the expansion is not eligible for rollover, please put me down 500m in the (2) High Value Opportunity Fund Loan.
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Machete Visor
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Posted - 2010.08.03 15:44:00 -
[19]
Originally by: Saidin Thor
I invested in the expansion of your station trading fund, and was wondering if I was eligible for rollover (investment was 500m, so 250m rollover). If I am, please put me down for 250m in the station trading fund, and 250m for the (2) High Value Opportunity Fund Loan.
If the expansion is not eligible for rollover, please put me down 500m in the (2) High Value Opportunity Fund Loan.
Thanks for your loan. Unfortunately I can't roll the loans over into equity in the original fund. 7B is the right number for that fund, and less than half can be equity.
But, 500M of the debt from the 2nd fund is yours.
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Zentrie
Minmatar
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Posted - 2010.08.03 16:25:00 -
[20]
100m in the (2) High Value Opportunity Fund Loan.
Sending once full 2b claimed, aye?
~~Warpalishous~~ |
Machete Visor
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Posted - 2010.08.03 17:15:00 -
[21]
Originally by: Zentrie
100m in the (2) High Value Opportunity Fund Loan.
Sending once full 2b claimed, aye?
Correct, once fund launches. Full 2B would need to b eclaimed and I will be shutting down my previous funds. Watch this post for details, and I'll likely send an evemail as well.
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Saidin Thor
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Posted - 2010.08.03 18:41:00 -
[22]
Originally by: Machete Visor
Originally by: Saidin Thor
I invested in the expansion of your station trading fund, and was wondering if I was eligible for rollover (investment was 500m, so 250m rollover). If I am, please put me down for 250m in the station trading fund, and 250m for the (2) High Value Opportunity Fund Loan.
If the expansion is not eligible for rollover, please put me down 500m in the (2) High Value Opportunity Fund Loan.
Thanks for your loan. Unfortunately I can't roll the loans over into equity in the original fund. 7B is the right number for that fund, and less than half can be equity.
But, 500M of the debt from the 2nd fund is yours.
I figured as much, but I thought it would be worth a shot
I'll also provide an additional 500m to the station trading loan if there's no problem with that, bringing it up to 1B total (500m in station trade and 500m in the high value opportunity fund, both in the loans).
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Zentrie
Minmatar
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Posted - 2010.08.03 23:56:00 -
[23]
Sending 100m in just one minute. Just checked forums.
~~Warpalishous~~ |
Zentrie
Minmatar
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Posted - 2010.08.04 00:23:00 -
[24]
Money sent. To machete visor.
Thanks.
~~Warpalishous~~ |
Burni StellarCoal
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Posted - 2010.08.04 02:30:00 -
[25]
Hi. I will admit I am new to these type of funds and am having a bit of trouble understanding your information here about your funds, particularly about the "debts" or loan part of it.
How does the debts part work ? Do people apply to take an amount of debt that is allocated to each fund and pay you interest on it throughout the term of the loan ? Or have I totally missed the point ?
Thanks in advance for your clarification.
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Machete Visor
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Posted - 2010.08.04 03:16:00 -
[26]
Originally by: Burni StellarCoal
Hi. I will admit I am new to these type of funds and am having a bit of trouble understanding your information here about your funds, particularly about the "debts" or loan part of it.
How does the debts part work ? Do people apply to take an amount of debt that is allocated to each fund and pay you interest on it throughout the term of the loan ? Or have I totally missed the point ?
Thanks in advance for your clarification.
Sure, happy to explain.
Each fund has two classes of investments - equity and loans.
Equity investors receive all the profit from the fund. It is the most desirable investment in terms of return. But it also is the first to lose money and receives payments more slowly (usually once a month).
Loans receive a fixed rate of return (5%, 7% or 10%, depending on the loan). The return is fixed, but you wont lose money unless all the equity is used first. Also, you receive interest payments each week (instead of monthly).
In eve, equity is clearly a better investment, but it is rare. I probably could've issued the equity in fund 1 at a premium.. ill have to think about better pricing next time around.
Right now, only loans are left to invest in.
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Acoada
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Posted - 2010.08.04 18:38:00 -
[27]
200m in the (1), 200m in the (2)
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Paramys
Minmatar
GOTTEG Mining and Industrial Union
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Posted - 2010.08.04 21:17:00 -
[28]
I'll take 100M in the (3) debt.
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kiall Toz
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Posted - 2010.08.05 07:32:00 -
[29]
Machete, thanks for the well run (and highly profitable!!!) STOF offering.
I'd like to rollover 50% of my STOF into the first fund and put me down for the remaining 1.2bil in fund 2 debt |
Taram Caldar
Royal Black Watch Highlanders
Warped Aggression
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Posted - 2010.08.05 20:45:00 -
[30]
Put me in for 500mil of the final 900. I got some unexpected cash that I'm willing to put into this.
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