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Two and a half years ago I opened a small non-registered commodity pool with
10 investors. I used simple partnership agreement... with the following
modifications. I'm the general partner. To try to avoid/diminish the
pressure of managing other people's money I had a minimum 3 year investment
period so they were looking at this as a long term investment. I also put
in the partnership that the limited partners were not allowed to contact me
by phone regarding their account, only in writing.
My trading results have been far less than spectacular but I haven't taken
ANY heat from the limited partners.
What I'm trying to say is that, I think you can set up a business agreement
with provisions to reduce the stress that the participants can have on you.
Good luck,
Howard
>From: "wallst" <wallst@xxxxxxxx>
>Reply-To: wallst@xxxxxxxx
>To: <realtraders@xxxxxxxxxxxxxxx>
>Subject: [RT] Re: Managing Money
>Date: Sun, 26 Mar 2000 07:35:29 -0800
>
>Really think twice before you start managing money for someone else. I
>tried to do this a few years back and it was one of the most difficult
>things to do, and im not talking about the managing of the money, the
>customers and clients can be VERY difficult to work with and can add a
>tremendous amount of pressure on your trading. In the end I just shut it
>down and gave everybody back their money. It wasn't worth the hassle. I
>think Marty Schwartz talked about the same thing in his book Pit Bull. It
>goes back to the thing where when your the hero everybody loves you, but
>once it goes the other way, then every ten mins the phone will be ringing,
>asking what is going on. This is not to say that it shouldn't be done. I
>think with the right mix of client and methodology, it can be very
>successful. But just remember that its one thing to trade for yourself and
>all you have to do is worry about yourself. Its another thing to trade for
>a group of different persoanlities, Keeping records for each and everyone
>of
>them, trying to explain everything you do(What do you mean we got stopped
>out?). Im not sure what your real motivation would be for starting one,
>just make sure that you really know what your getting into before you do
>it.
>
>Troy
>wallst@xxxxxxxx
>----- Original Message -----
>From: Levent Erbora <erbora@xxxxxxxxxxxxx>
>To: <realtraders@xxxxxxxxxxxxxxx>
>Sent: Saturday, March 25, 2000 11:28 PM
>Subject: [RT] Managing Money
>
>
> >
> > What would be the best type of business entity to form for investing and
>managing a few other people's money?
> > A limited partnership? A "limited liability corp. (LLC)" maybe?
>Something
>else?
> > What would be the pros & cons for the above?
> > The number of investors would probably be less than 10, and the funds
>would mainly be invested/traded in the stock market (no
>futures/commodities).
> > Also, what would be the typical or generally accepted fee
>structure/profit
>sharing arrangement between the investors and the money manager?
> >
> > Any and all advise, insights and pointers will be greatly appreciated.
> >
> > Thanks in advance for your time.
> >
> > Best regards,
> >
> > Levent Erbora
> >
> >
> >
> >
> >
> >
> >
>
>
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