Where will the money be invested?
Initially, majority of the money will be invested in stocks as this is where I have most experience with. A certain amount will be invested in Philippine stocks as I am most familiar with this market; also there are lots of opportunities right now in Philippine stocks. Further you have to take note that the growth is in Asia. That is why Asian stock markets particularly the Philippine stock market has been the best performing stock markets for the past 2 years.
Certain amounts will also be invested in the U.S stocks since it is poised for recovery. European stocks which are currently very much undervalued will also be part of the portfolio including stocks of emerging markets.
Other opportunities like bonds, forex, commodities, derivatives and other ways to grow the portfolio will also be explored and exploited as soon as the opportunity arises.
What is the investing strategy utilized by the One Dollar Hedge Fund?
I am more inclined to using value investing strategies to run the portfolio. My flavor of value investing is running a concentrated portfolio with a “buy and hold forever as much as possible” approach. From time to time we will sell our positions to take advantage of profit opportunities if the market becomes crazy and over values our holdings.
Do you guarantee a rate of return?
No. Not even Warren Buffett can guarantee this. As the famous disclaimers printed in fine print in investment products say (With a little humorous twist):
Past performance is not indicative of future results. The One Dollar Hedge Fund does not guarantee any specific outcome or profit. You should be aware of the real risk of losing your one dollar in here. Your capital may fluctuate in price or value. Investors may get back less than invested. Investing your one dollar here may be or may not be suitable for you. The One Dollar hedge fund does not take into account your particular investment objectives, financial situation or needs. You must make an independent decision as to whether you should invest your one dollar here. Before investing your one dollar, you should consider whether it is suitable for your particular circumstances and strongly consider seeking advice from Warren Buffett, George Soros or Jim Cramer.
Click here to see our “serious sounding” disclaimer.
How long before we can enjoy our profits?
Probably 55 years. Hehehehehehe . . . Nah just kidding. Since we primarily apply a buy and hold strategy to majority of our portfolio, I’d like investors to cash out only after 10 to 20 years or even more. Time is the greatest friend of the buy and hold strategy. After you’ve made initial one dollar investment, just forget about it and you will be surprised how much it will turn to. A woman named Grace Groner invested in shares of stock worth $180.00 in 1935. She held on to the stock for 75 years! When she died in 2010 at the age of 101 the shares were worth $ 7 million dollars! Check out her story here.
Of course I don’t except you to turn 101 before you can cash out, but I expect you to hold on to a long period in order to maximize the growth of your investment.
How much do you charge as management fee?
Unlike most hedge funds which charges a fix percentage fee regardless if the investors incurs a net gain or loss, I have a unique management fee structure.
I deduct a management fee of 25 % of whatever profits less taxes and other trading transaction cost over what your investment would make if placed in a bond (I assumed the rate at 5 % per annum) I feel that it would not be right for me to take a management fee if the fund is merely making what you would make if you place your money in a government bond, which is considered as the safest investment with the highest amount of yield that an ordinary investor could place.
In other words if you make money over and above the return of government bonds (assumed at 5 % per annum) that is the only time I make money. If you don’t make money, I don’t deduct anything at all. This gives me more incentive to wisely manage the fund in order that you make money first in order that I could make money.
How do I monitor the growth of my investment?
Once you become an investor you will get a yearly update (Every February) on the performance of the fund. The update is only done yearly because I expect investors in the fund to be long term holders. Investors will also be updates if we reach our goal capital raising goal.
Great ! I wanna invest now !
To start investing your $1.00 click on the orange “PAY NOW” button and you will be taken to paypal so that your payment will be processed. Should you wish to invest more than $1.00 please use the contact form to contact me to signify your intention.
I have already invested my one dollar now what ?
You will receive a confirmation email that I have received your investment. The email will be based on your Paypal account, since payments are done in Paypal and all Paypal subscribers have email accounts. It would however be much appreciated if you send me a message using the contact form notifying me that you made your investment.
If you do not receive an email confirmation please contact me using the contact form. Please give us about 72 hours to respond to your email. If I do not respond within that time period then send me another message.
After that sit back relax and have fun watching your $1 dollar investment grow. You will receive a report on February every year.