Sharing is Caring; A Fresh Start

Synopsis:

I’m back, baby. Despite poor 2016 performance, I’ve found several investors who are willing to match investments into a new fund. Accounts are all opened and funded. We’ve got enough AUM to at least keep the lights on (along with reporting/consolidation software). So, come Monday (May 1, 2017), we’re live once more.

I will once again be posting position updates in real time. I will write/blog/share more about the positions we hold. And as best as I’m able, I’ll try to post weekly portfolio/performance updates as I used to before my old firm shut down.

A fuller, more detailed story below; But suffice to say: I’m back, baby.

Background:

For the past decade or so, I’ve been a managing partner at a decent sized private equity fund. Within this fund we managed around $400m of private equity along with a more liquid public equity portfolio. We developed a strategy based on a social media/sentiment strategy back in 2013. And we launched it live. This was a very small portion of the fund $10m of the $450m under management. This strategy performed fairly well; Not exceptional, but better than the benchmarks after fees. Every trade was posted (even before we got filled) to Stocktwits/Twitter and we tried to make it easy for everyone to follow.

As many of our private equity investments wound down, we decided it was time to close up shop and branch out on our own. I snagged the social/sentiment strategy and some of our proprietary quant strategies and went out on my own. With only my own liquid funds and one other investor (close friend), the fund was not large enough to justify purchasing a lot of the investment/reporting/research/consolidation software we relied on at my old fund.

I’ve had a rough start after branching off on my own. And not just fund performance wise. I’ve realized how heavily I relied on a lot of the software I took for granted. From bloomberg terminals to our order algorithms (IB’s are quite different), to even the file-system architecture we had. On a shoestring budget, I’ve also had to take on a lot of the tech/IT/Security issues myself. I’m not saying these issues even remotely caused poor investment performance; that was all me (two majorly stubborn trades/position on my part: (VRX long ($50ish avg) & Short S&P-500 through the entire trump rally and then some).

However, before I could go out and bring on new investors, I needed to have all our systems/procedures/compliance/IT/security/etc figured out and ready to go. Perhaps working on that end of things has caused some distraction from my main job (investing), but I doubt it. Many of my other positions have done outstanding.

Going Forward:

I’ll likely organize anything we are sharing publicly on here (Medium). It seems to be the easiest (free) platform besides email for blogging/sharing longer form posts nowadays. I will also post to stocktwits/twitter position/order updates & link to any longer posts I’ve written up.

Launch Details:

  • Launch Size: $2.25m
  • Brokerage: Interactive Brokers (unfortunately, our borrow list may not be what it used to be)
  • Fees/Expenses: 1% Management fee, 20% performance fee, fund administration ($500/mo), Taxes/Audit ($1,000/mo), Legal (amortized expenses — $600/mo)

Will post our initial portfolio as of close Monday. But you can expect a lot of the names I’ve been vocal about to show up:

  • Potential Longs: AAPL, AMZN, CBRL, CYBR, ESGR, FNMA, FNMAS, GBT, GILD, GRMN, GS, IBB, IBKR, MCD, PM, SVVC, VRX, WFC
  • Potential Shorts: AI, ENIA/ENIC, E-Mini Futures, MBT, MUR, PACB, SPIL

IMPORTANT RISK FACTORS/DISCLOSURES:

This post is for informational purposes only. It is not a recommendation to buy or sell any security and is strictly the opinion of the writer. Readers are expected to conduct their own due diligence or seek advice from a qualified professional. The author has established positions in many of the securities mentioned, and plans to buy/sell in many of the names within the next 72 hours. This post is not an offer or the solicitation of an offer to buy interests in any fund discussed above.

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