Quote from: cytokine on May 30, 2012, 10:49:16 PM

5/30/2012 - CONTRACT UPDATED PRIOR TO IPO such that dividends are automatically reinvested into the fund, which is how most hedge funds operate. This ensures the highest possible performance for investors, as well as making MOVETO.FUND a "set it and forget it" type of investment, where clients are not continually having to reinvest their own dividends. ( It also has the side effect of making the paperwork easier for everyone, because investors that continually request new shares in order to reinvest their dividends would be very difficult for me to accommodate. )

Here is the final contract:

(0) Each IPO share represents a 1 BTC investment in the fund.
(1) The fund trades and invests solely in securities on the GLBSE.
(2) The maximum concentration in any given security is 20%.
(3) 80% of earnings are reinvested for fund growth, and 20% are paid out as fees to the fund operator. Fees are paid once a month on the first of the month.
(4) The fund operator will buy-back shares on the first of every month upon request to ensure liquidity for exiting MOVETO.FUND. Each share is valued at (1 / # shares ) * fund_portfolio_value minus 1% to cover redemption expenses.
(5) New shares may be issued at any time at (1 / # shares ) *
fund_portfolio_value price to ensure liquidity for entering MOVETO.FUND

I have notified Nefario of these changes so hopefully the IPO page will change shortly. Naturally after the first share is sold the contract cannot be modified, so I want to make sure I get it right. It's also possible Nefario will require that the IPO be postponed somewhat due this modification.

Either way, I will keep you posted. Take care.
-cyto

It's closer and closer to the fee structure of the "real-world" hedge funds now. Good to know that at least you don't charge an extra 2% of the deposits like other hedge funds do. Grin

There's a potential risk for you however. If there's a panic buy-back demand with a high volume, you will lose a lot of money when you liquidate your position, considering the low liquidity of GLBSE.