Starting a mutual fund

[mindflayer]

How to Get Investors to give you Big $ with no track record?? Kids play. (It is a really good story )
See "Gaining investment dollars" below my rant.

Rant
Here is a good analogy to what you are asking.
I am The "Insert Goldenboy of the moment here" of poker.
I never played poker before, but My FUTURE track record will prove my ability. Heck, I don't even know the rules of the game, but I have a good FEELING of how to play.
I want you to bankroll me and in return I will only charge you a small annual fee for lending me your money. You get paid IF/when I win.
Sounds like a good deal right?!?

I would bet $100 you could not beat the S&P 500 index for the next 2 years. +EV for me..

Gaining Investment Dollars
(or..When you don't have a track record and you need a million dollars to invest.)

Step 1)
Set the cutoff number you need of investors. say 10

Step2)
Then set the number of "GUARANTEED Stock Winners" you need to show them for them to be won over. say 5 in a row.

Step3)
NOW take 10 and double it 5 times.. 10, 20,40,80,160.
Ok now weneed 160 Initial prospects.

Setp 4)
Purchase a list of 1 million emails for some Lunch meat special. (read >SPAM&lt If we suspect that only 1 in 100 people read investment spam.. then multiply 160 x 100.. = 16,000

Step 5)
Pick A Volitile Stock..one that move UP and down a lot.. Doesnt matter which. Just nothing moving because of legal problems. Call it Stock A

Step 6)
Send out 16k polite.. Watch me the "golden boy" pick stocks e-mail. DONT INVEST, JUST WATCH..
The body of the email says.. I just picked a stock for you. STOCK A. IT will go UP this week .. I GUARANTEE it.
The first 8,000 get this body.
The second 8,000 get this email instead.

I just picked a stock for you.. STOCK A, It will go DOWN this week, I GUARANTEE it!

Step 7)
Fast forward 1 week.
If the stock went up.. we dump the second group.. If it went down we dump the First group. No matter what we have shown 8,000 people we could pick 1 winner. SO Frikkin What.

Step 8)
Pick Volatile stock B
email title .. anyone can pick 1 winner..
DONT INVEST, JUST WATCH..

Send out 8,000 emails as before. 4000 we guarantee it will go up, the second 4000 we guarantee it will go down.

Step 9)
Same deal, 4000 people have seen us pick 2 winners in a row.. Repeat with 2000, and 2000

Step 10)
Repeat

Step 11.. etc)

Somwhere now we have 1000 potential investors who have seen us pick 5 Winners in a ROW!~! Make your pitch for them to invest the big $$$ in you. (to them you are golden boy..)
Doesnt matter for 15,000 people you got it wrong.

there are a lot of variations on this idea, but you get the picture.

Dont get scammed, invest in an index.
My 2c

[hawk59]

shoe,

How much experience do you have investing on your own?

[Badger]

I'd like to add-
lol

[Badger]

[ QUOTE ]
shoe,

How much experience do you have investing on your own?

[/ QUOTE ]
Shoe's Prosper Loan
That should tell you about all you need to know.

[sylar]

[ QUOTE ]
I'd like to add-
lol

[/ QUOTE ]

i'd like to add-
GO FOR IT!

[mal_noles]

This thread has the potential to be better than IOWAFARMLAND.

[APXG]

The amount of lols in this thread is actually more retarded than the OP post.

Shoe,

Why not just play poker for 3-5 years for steady income, run a personal portfolio with some of the savings(if you think you're ready for that), and then decide whether to take outside money?

$200-300k should be plenty to start an audited personal fund(even if you pay $25k in fees), and if you haven't made that from poker yet, I would say its a prerequisite to your current plan given the massive amount of intangible skill(human psychology, emotional control, insatiable work ethic, etc) that even medicore success at poker helps you fortify.

Poker is a godsend for the aspiring money manager in that it allows tons of free time for independent studying / taking unpaid interships / carousing around the world, and also generates decent startup capital that can always be "re-earned" through more poker if things don't go well. And yet everyone seems to wanna throw it away to take some semi-obscure job at an i-bank where a bunch of arrogant pricks are gonna decide your fate?!?!

[Badger]

[ QUOTE ]
The amount of lols in this thread is actually more retarded than the OP post.

[/ QUOTE ]
I beg to differ. I apologize for coming off as condescending by having nothing to contribute to this thread other than negativity; but did you read Shoe's other thread? He ignored a lot of good advice and reason. Given his lack of understanding of basic investment concepts I think his idea to start up a mutual fund deserves an lol.

[Sharking4Fishies]

Start a hedge fund as a limited investment partnership instead. You'll be limited to 100 partners, but next to no regulation if your AUM (Assets Under Management) is < $25 million. Then write out of the money speads on the SPX futures options every month =c)

[Shoe]

[ QUOTE ]
[ QUOTE ]
The amount of lols in this thread is actually more retarded than the OP post.

[/ QUOTE ]
I beg to differ. I apologize for coming off as condescending by having nothing to contribute to this thread other than negativity; but did you read Shoe's other thread? He ignored a lot of good advice and reason. Given his lack of understanding of basic investment concepts I think his idea to start up a mutual fund deserves an lol.

[/ QUOTE ]

Thanks to all who gave advice in this thread. I'm definitely not going to start a mutual fund now, but going to try and go the newsletter route, with the possiblity of starting a private fund somewhere down the road if things go well. I think I'm going to start a website where I post my trades so people can track my results. I plan to do more research, but does anyone know if there is anything I need to be careful about there (i.e., I don't want the SEC accusing me of trying to manipulate the market).

Badger -- In the other thread I did listen to advice which made me withdraw my loan request -- and that has cost me about $5,000 in profit so far, but your right my original idea was terrible. I am going the 0% credit card loan route (as advised in that thread) so all will be well in the near future.

For others, no I do not have a lot of investment "history", However, I have followed the market with great interest ever since I was a kid, just have never had the money to actually invest until recently. I am working on building my portfolio as we speak.

For anyone who is interested, here is all the stock trades I have ever made in my life:

10/29/02: Bought 13 shares of TTWO @ 25.509
02/23/05: Sold 13 shares of TTWO @ 36.33

10/29/02: Bought 14 shares of YHOO @ 14.359 (shares later split)
02/05/07: Sold 28 shares of YHOO @ 28.6

6/27/03: Bought 2 shares of ERTS @ 76.95 (split)
2/23/05: Sold 4 shares of ERTS @ 63.61

6/27/03: Bought 4 shares AMZN @ 36.80
2/23/05: Sold 4 shares AMZN @ 34.11

3/2/05: Bought 10 shares CRYP @ 30.12
2/5/07: Sold 10 shares CRYP @ 25.69 (dividends not included)

6/7/06: Bought 7 shrares CBS @ 27.45
2/5/07: Sold 7 shares CBS @ 31.40

2/5/07: Bought 207 shares of SIX @ 5.81
2/22/07: Sold 207 shares of SIX @ 6.36

2/9/07: Bought 340 shares of SIRI @ 3.68
3/5/07: Sold 340 shares of SIRI @ 3.39

3/5/07: Bought 416 shares of SIX @ 5.865
4/3/07: Sold 416 shares of SIX @ 6.0001

4/3 - 5/22: kicking myself for not buying NTDOY

5/22/07: Bought 74 shares of NTDOY @ 42.45 (own money)

7/12/07: Bought 126 shares of NTDOY @ 51.95 (cc interest free loan)

NTDOY current price: 60.40

For most of the time from '02 - '06, I was not actively managing the portfolio at all, just providing the little bit of history I do have. As you can see, while most of the trades made money, the dollar amount actually earned was not very much.

At the beginning of '07 with my purchases of SIX and SIRI that was my attempt at swing trading. Since then I have decided it is better to invest in solid companies that have a lot going for them, as opposed to speculating in companies that are losing money (but whose price is much more volatile).

I bought NTDOY because I think they are going to enjoy a run similar to AAPL. They have a lot going for them and I see them continuing to soar higher.

Take that as you will, judge me how you will. And thanks to all who have given great advice in this thread and others.