UnThreaded | Threaded | Whole Thread (6) | Ignore Thread Prev | Next
Author: kahunacfa Big funky green star, 20000 posts Top Favorite Fools Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 7258  
Subject: Re: investment clubs Date: 12/14/2008 8:54 AM
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Recommendations: 0
I was asked to join an investment club, and a few of the things I heard did not make sense, after reading a few books and check on-line I still have some questions.
The person who asked me to join, said he would keep a share per 10 people who joined for managing the club, he was going to do all the research, and investing.
He did not mention anything about registering the club or protecting the members in any way.
From what I have researched this doesn't sound on the up and up to me, is this how investment clubs are run?

thanks
TC
- motelmom | Date: 12/3/2008 9:59:47 AM | Number: 7217

What the person who invited you to join his investment club is doing is taking a share of the member's capital as compensation for his doing all of the work. It is one way for the "Leader-of-the Pack" to find a way, perhaps legal, perhaps not, around the Investment Advisers Act. If the person is Warren E, Buffett, consider it - Otherwise NOT.

The structure is somewhat similar to the organization of a "Hedge Fund". Hedge Funds, as Private Investment Limited Partnerships, are not currently regulated by the Securities and Exchange Commission(SEC). This non-regulation of Hedge Funds may change sometime in the future.

Kahuna, CFA
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (6) | Ignore Thread Prev | Next

Announcements

Starting a Club
Learn how to start and run your own club, the Motley Fool way!
Feste Award Winner Announced!
Congrats to the Winner of the 2013 Feste Award!
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and "#1 Media Company to Work For" (BusinessInsider 2011)! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.
Advertisement