A330Pilot

Hi everyone...I am curious, if there was to be a Hedge Fund started, specifically for Airline Pilots, would any of you genuinely be interested in investing with it assuming say on average it returned about 10-20% a year consistently?...Please share your thoughts...BTW, it would be a fully functional and registered investment fund aka totally legit...The profits would be a 80/20 split...Meaning, 80% of profits go to invester, 20% to the Fund Manager...

Feel free to contribute to this convo- all thoughts appreciated

Sliceback

For a guaranteed 10-20% I don't think you'll get any takers. Up the guarantee to 33-40% and it might be a good part time gig.

At 50% it might be worth the risk of leaving to manage it full time.

seekingblue

I doubt most airline pilots qualify. The SEC regulation is below:


"You generally must be an accredited investor, which
means having a minimum level of income or assets,
to invest in hedge funds. Typical investors include
institutional investors, such as pension funds and
insurance companies, and wealthy individuals. Hedge
funds are not subject to some of the regulations that are
designed to protect investors."


--and further more--

"Are you an accredited investor?
An accredited investor, in the context of a natural person, includes anyone who:
earned income that exceeded $200,000 (or $300,000 together with a spouse) in each of the prior two years, and reasonably expects the same for the current year, OR
has a net worth over $1 million, either alone or together with a spouse (excluding the value of the person’s primary residence).
On the income test, the person must satisfy the thresholds for the three years consistently either alone or with a spouse, and cannot, for example, satisfy one year based on individual income and the next two years based on joint income with a spouse. The only exception is if a person is married within this period, in which case the person may satisfy the threshold on the basis of joint income for the years during which the person was married and on the basis of individual income for the other years.
In addition, entities such as banks, partnerships, corporations, nonprofits and trusts may be accredited investors. Of the entities that would be considered accredited investors and depending on your circumstances, the following may be relevant to you:
any trust, with total assets in excess of $5 million, not formed to specifically purchase the subject securities, whose purchase is directed by a sophisticated person, or
any entity in which all of the equity owners are accredited investors.
In this context, a sophisticated person means the person must have, or the company or private fund offering the securities reasonably believes that this person has, sufficient knowledge and experience in financial and business matters to evaluate the merits and risks of the prospective investment."






The paragraphs above are taken directly from the SEC website. Not saying that everyone doesn't qualify to join a hedge fund, but the vast majority of airline pilots won't.

Name User

No. Doubtful this specific hedge fund could compete with the professionals out there. Not sure why it would need to be "pilot specific", sounds like it's for sale in Sporty's.

Piklepausepull

Hey Bernie! They letting you use the library computer! Can you watch porn too?

IrishNJ

Ha ha. Great. Madoff targeting airline pilots now.

Anyone that thinks they'll make 10-20% guaranteed is an idiot. The only thing special about a hedge fund is that you get charged more so end up with much less in the long run than a Vanguard index fund.

(20% of profits to fund manager ... If there are losses I assume the fund manager will give back 20% ... Not)

maddogmax

Let me guess, you would be the fund manager!

MikeF16

Retitle this thread "Suckers Please Respond Here".

grnclvrs

If I invest, can I get 5 of my buddies to invest as well and I get the 20% from them? Then they could each get 5 of their buddies to invest and get their 20%, and so on and on.

Speedbird2263

Trebek: "For the Daily Double, Mayans and Egyptians were best known for building these..."

-2263