Setting up of an investment limited partnership

[etan]

I can't agree with you more on all the points raised.

Must have at least a more meaningful amount of $ to start with.
Basic biz expenses will erode a certain %tage of the principle.
As the float is small, it's difficult to maneuver funds around, not sure if can withstand any big volatility that may happen once in a while.

I think it's not so easy to help manage OPM!
It could be somebody's retirement fund or something.
Everybody's financial status is different at different stages of his life.
Some may need to pull out at some point in time.

If it's your own money, you are only answerable to yourself, be it up or down.

I suggest you give up this impractical notion unless you can find some serious money within a short time frame.

All the associated corporate overhead costs, tax expenses and legal implications resulting from whichever form you choose to set up this 300k "fund" will wipe out whatever you can make out of it.

As a fund management business model, it is not feasible generally if you cannot secure a committed capital of at least $20 million. Some startups start off with a few million and make it a goal to ramp up significantly in a few years to recoup earlier losses.

If you are doing it out of alturistic reasons and just want to help your friends and family, it is much cleaner and more efficient to have them maintain their 50-100k accounts seperately in their name and share with you their holdings so that you can advise them on any investment actions.

Also do take note investment performance tracking is a far more complicated thing to do on a professional level than just using elementary XIRRs or X divide by Y formulae in excel. Your unit pricing mechanism and valuation modelling must be able to withstand audit and legal scrutiny.

[specuvestor]

d.o.g had a good summary here:

http://www.valuebuddies.com/thread-3630-...l#pid56453