Sorry for the late update today folks. My sister got married. We had our insured pirate holdings in YARR, and have lost about 2.5% of portfolio value. In order to counteract this, I have decided to suspend our IPO and our dividends. This way, you will be able to trade your assets freely on the market. It takes no genius to determine that there will be some major shifts in the market in the coming weeks. Interest rates should lower significantly now that both pirate and BDT are on the downswing. The dividend will be reinstated as soon as I can possibly can. Thank you for your patience and understanding.
If you do not reasonably think that you will be able to further go on as planned, and especially that early in the IPO, you should put a buy order at face value and return funds to the investors, and reopen YABIF when the market has settled down.
This is an investment fund, not a bond. If you want your shares to never lose value, start a motion to turn this into a bond. I gave you adequate warning about how we would fair in such an event. Had something I personally did, like make a typo happen, I would cover your losses, however, a market wide phenomenon like this who's risk was apparent from the beginning is not something I will cover you for.
Hi.
There is something I don't understand though when looking at the numbers on GLBSE:
Payment date | Total paid | Shares paid | Payment per share |
2012-08-14 11:22 | 1.326 | 663 | 0.002 |
2012-08-15 10:42 | 1.33 | 665 | 0.002 |
2012-08-16 09:48 | 1.334 | 667 | 0.002 |
2012-08-17 11:33 | 1.338 | 669 | 0.002 |
2012-09-03 12:38 | 1.11276 | 198 | 0.00562 |
The number of shares in the fund has decreased. As far as I know, this is only possible if the fund operator buys back shares in the fund capacity, which reduces the value of the fund. I don't see that anywhere in the contract, and this also goes against the purpose of using GLBSE for an investment fund, which is to prevent withdrawals from drying up the fund liquidities.
Could you please explain how at least 471 shares out of 669 (more than 70% of the shares!) were paid back, to whom (especially if this is to you as the fund operator) and at which price, especially when you denied my request as in investor to return the funds when you chose to stop the IPO?Since there is a lack of bids right now, I want to make it known that I am willing to buy shares back at .95 at any time. Just pm me, and I will put the bid up.
Here, you talk about putting a bid to buy shares back at .95, but you would do so as an individual, right? Doing it by diminishing the fund value would be detrimental for the other investors. Moreover, reducing the number of fund shares by exchanging private messages would certainly qualify as an "under the table deal".
One of your selling points was the absence of under the table deals and insider trading, as well as transparency of operations (I quote those parts below for easy reference). Also, you said that a wind down of the assets would require 67% of the votes, while it appears that a wind down did occur (going from 669 shares to 198) without any motion being presented and voted.
I sincerely hope that this is all a misunderstanding on my side and that you stuck to the terms agreed to by your investors, but your lack of communication especially regarding the apparent wind down makes it hard to assert what's really going on here.
There will be no under the table deals. All shares will be issued on the open market with a maximum of a 2% discount to spot price, NAV, or 5 day average.
I will hold a large majority of my own money in this fund. I will also be taking a management fee of 3%. Dividends will be disbursed when no deals are on the market, or when shares are being offered.
No information that could lead to insider trading will be disclosed to anyone. As most of my capital will be in the fund, almost all insider trading risk will be severely limited.
A 67% approval on a motion is necessary to proceed with a wind down of assets. In the event that I can no longer continue as fund manager, assets will be disbursed according to share ownership.
Why Invest with me?- Let me do the hard work
- Focus on safe stocks
- Transparent Operations
- Good returns
- Uncapped Returns
- Low Fees
- No off-market share sales