Topic: [CLOSING...] MOVETO.FUND - MoveTo Growth Fund - page 8. (Read 12831 times)

Thanks. Thats an interesting use of the motions feature on glbse

No, there is no private mailing list. I post updates to this thread, but I will also send financials to shareholders each month using the "motion" feature on the GLBSE. (And of course I'll post a heads-up here when that happens.)

I might invest in this. Is there a mailing list or private forum for shareholders ?

I would like to remove the 20% per asset allocation limit, and make allocation a judgement call on a case-by-case basis. Additionally, I would like to have the ability to invest outside of the GLBSE (for example, at other exchanges or opportunities). The reason is simple: at present, due to the very small number of high quality assets, these two restrictions are unnecessarily tying us up and reducing efficiency by forcing us to invest in assets that are less efficient. I was not expecting this because my past experience has been trading the S&P500 where this is not a problem because there are plenty of shares to choose from, but on the much smaller GLBSE it is. I personally am very unhappy with this situation considering that I now own 3.5K+ shares and would like to be more efficient with these shares.

Since this would be a minor change of the contract, however, I will of course buy-back any shares from those who disagree with the modification immediately upon their request at the full NAV per share. The updated contract is much more mature and should be something we can go with for some time to come. I also added in a clarification about how fees work, because the previous contract was ambiguous.

I will absolutely not make it a habit of changing terms (this is likely a very rare event), but you must realize this is just the first month of operation and therefore I am learning a lot about how to properly structure GLBSE contracts. It is in everyone's best interest to do this now, in my opinion.

As always, your feedback is welcome.

Here is the updated contract:
(0) Each IPO share represents a 1 BTC investment in the fund.
(1) The fund trades and invests primarily in securities on the GLBSE, but may also invest in opportunities outside of the GLBSE. The fund will not be involved in any pirate-related investments.
(2) 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.
TO CLARIFY:
The 20% fee only applies to the differential between the last high water mark and the new high water mark. This means that I only make money when my investors make money. For example: if we have a losing month, that means I have to make that money back and then some before I can get paid. (This is also known as a performance fee.) There is no management fee.
(3) 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 the NAV per share minus 1% to cover redemption expenses.
(4) New shares may be issued at any time at the NAV per share to ensure liquidity for entering MOVETO.FUND
(5) This contract may be amended in the future provided (1) the operator alerts all investors and offers to buy back shares at the full NAV per share and (2) the operator gives at least 2 weeks prior notice. The buy-back offer must be open for one full month after any modification.

Many thanks,
-cyto

Just what I've been looking for. I'm in for the long haul. looks promising.

I will be updating the NAV per share at the end of the month as well as posting the buy-back price (this is the normal routine that I'm sticking to). In the short-term we're about flat because we had to pay up to get higher-yielding assets, but only by sacrificing about a couple weeks of future gains. So I expect these investments to pay off within the next month. Keep in mind that I have purchased the vast majority of the shares (over 3.5K right now), so my interests are your interests.

Good analisys. Seems accurate to what's happening, and most important, what will happen. BUT (here goes the ubber question):

- Are you earning money to us, your shareholders?  

GLBSE Commentary:
The assets on the GLBSE are badly mispriced. The data I'm looking at is kind of bizarre with how mis-priced the market is. Prices for certain bonds are going to have to rise (and therefore yields per btc invested fall), that much I am certain of, which is why I'm focused on those so that we may experience capital gains. But it's possible that even the lower yielding bonds could be worth a lot in the future even at these prices if yields fall sufficiently in the broader market. There is a huge gap, so something is going to have to give. So there is a reason to allow the purchase of *small amounts* of lower-yielding assets: capacity, since other assets are very hard to come by.

One of the few non-mining securities with a decent upside potential I see is the IBB, but it is extremely overbought at present so I just cannot buy it at these inflated prices. I am very bullish on Bitcoin in general and the potential for the overall Bitcoin economy.

Based on questions I have received, I have updated the FAQ to clarify how fees work. If you don't want to re-read the OP, here is the relevant section:

The 20% fee only applies to the differential between the last high water mark and the new high water mark. This means that I only make money when my investors make money. For example: if we have a losing month, that means I have to make that money back and then some before I can get paid. ( This is also known as a performance fee. ) There is no management fee.

Thanks,
-cyto

Updates:

• Completed work on one of my slightly higher-frequency indicators, which will help us to time purchases after a buy signal is received
• Received several sell signals today, luckily nothing we own
• Optimized some strategy parameters to reduce portfolio turnover
• Moving over about 2K BTC into the GLBSE, so I will buy up the remaining IPO shares soon. I will issue an additional 4K shares shortly thereafter, giving us an initial target market cap of 5K BTC.

Take care,
-cyto

A few updates:

• Made a small improvement to the backend analysis code today
• The model issued a fresh buy signal today on a very liquid asset, so we're ramping up our purchasing in this area
• 251 222 IPO shares left - now is a great time to get in!

Take care,
-cyto

I agree. The GLBSE is growing so rapidly that I'm sure it will accommodate a large diversity of funds and strategies. There are always more companies springing up, which means more opportunities for everyone.

Well don't take my words too seriously. It is just very exciting to see MOVETO.FUND appearing, since it's practically the first hedge fund in Bitcoin, and I can't help throwing out random ideas.

In fact our fund MU is also a long-only fund which profits mainly from buy-IPO-then-sell and market-making. Because of this, I'm very glad to see other funds thrive. Although they may bring some competition, the bullish impact of them to the GLBSE market is sweet.

I have run various different funds in "real life" and have been doing trading and investing for many years.


Blame the regulators. Everything in the Bitcoin world is a legal grey area, especially if you're doing any sort of money management. That is why I use tormail.


I can probably sell you some IPO shares at a discount if you buy a large quantity, but I would have to put in the difference myself s.t. other investors do not lose NAV. Just PM me with how many shares you want and I'll let you know what I can do.

Sorry, I should have been more specific, but with everything I say I must be careful not to give up my methodology.

I have tested many long-short models and have found better performance from a long-only model that can switch into a completely different strategy during bear markets, albeit with higher draw-downs than a pure spread trader. So it's a tradeoff between return and draw-downs, just as it is with any approach to the market. But then again, perhaps this simply means I don't have as effective a pure long-short strategy as something you are familiar with.  

A couple questions for you cytokine...

Who are you and what qualifies you to run this fund?  You have only been registered here for a few weeks, use a tormail email, aren't verified on GLBSE.

Are you selling blocks of shares at a discount?

Your 1K BTC fund might become 1M or 100M USD or even more after 5 years, if BTC really takes off, and you manage to cash out exactly before each time it rallies.


I think a well engineered long-short strategy not just reduces the risk, but also increases the expected return. "makes less money" means it will make less money in the best scenario. However, what we care about most is the expected average return rates, right? So both the "what if a meteor hits earth" condition, and the "if I long AAPL from the start" condition, contribute only a little to the average return rates.

Of course it's just my personal view which I'm not very sure of.

Lol with my teenie market cap of 1K BTC! Seriously though, thanks for the motivation.

For now I choose long-only with a market-timing component, since that performs better in my experience than the classical "hedge-up/lever-up" approach. The problem with the long/short strategy is that it makes less money, and yet although it may appear to have less risk, in reality you never know when your spreads are going to come apart (think LTCM).

And another thing to consider:

It would be very interesting if you could develop a more conventional strategy as real-world hedge funds do? What in my mind is something like a combination of several or all things above:

1. longs on GLBSE.
2. shorts on GLBSE.
3. longs on BTC vs USD.
4. shorts on BTC vs USD.
5. call/put options of GLBSE assets.
6. other derivatives not re-invented in the Bitcoin world yet.

Because I feel that long-only strategy is more vulnerable to risk than a carefully planned combination-based one. If you could make it fully automatic and rely on a sound investment model, MOVETO.FUND may become the Renaissance Tech of Bitcoin(http://en.wikipedia.org/wiki/Renaissance_Technologies).