首页 | 学习中心 | 注册 登录
123
返回列表 发帖
lcai

UID
218219 
帖子
592 
主题
150 
注册时间
2011-5-26 
最后登录
2012-9-12 
21# 跳转到 »
发表于 2011-7-13 13:56 | 只看该作者
But to be clear here the real differentiator is how a private fund is organized and additional investment freedoms they provide and not a "single security" vs. "diverse securities" - which I still dont fully understand why you would establish a private completion fund composed of the same security - simply not the most direct route to diversify with and there are limits to what you can do through derivatives!

TOP

cityboy

UID
222290 
帖子
1126 
主题
88 
注册时间
2011-7-2 
最后登录
2016-4-16 
22#
发表于 2011-7-13 13:56 | 只看该作者
Exchange funds are organized in such a way that it exchanges funds between investors. So if there are 10 investors each have concentrated stocks, there will be fund created with all of them and have distributed amongst them. For Private Exchange, if a mutual fund is having stock where one investor's portfolio is concentrated, mutual fund will exchange that stock for the investor by mutual fund(same) and will make it more diversify. However this strategy will be possible when the stock is part of the mutual fund. While exchange fund is possible for any investor as they are creating their own fund.

TOP

IAmNeil

UID
222300 
帖子
619 
主题
52 
注册时间
2011-7-2 
最后登录
2015-12-20 
23#
发表于 2011-7-13 13:56 | 只看该作者
This thread just made me even more confused. What are the differences between a public and private exchange fund?

NO EXCUSES

TOP

liangfeng

UID
218211 
帖子
659 
主题
120 
注册时间
2011-5-26 
最后登录
2012-9-12 
24#
发表于 2011-7-13 13:56 | 只看该作者
it allows for more cost effective hedging techniques like OTC zero cost collars that you could structure with a trading desk... they have minimums for these types of transactions, so if you comingle your stock with your partners, you will be able to use derivatives to hedge more cost effectively...

TOP

Unforseen

Rank: 2

UID
222295 
帖子
348 
主题
4 
注册时间
2011-7-2 
最后登录
2014-6-29 
25#
发表于 2011-7-13 13:56 | 只看该作者
private:

same security
has to be unrelated parties holding the same security
not required to hold illiquid stock
limited partnership structure
can borrow to monetize
partners can chnage compositions

public

must hold 20% or greater in illiquid assets
manager controls assets
no chnage after implemetnation
partners share each others gains or losses
ability to monetize
int he end holds diversified holdings

TOP

infinitybenzo

Rank: 2

UID
222323 
帖子
377 
主题
10 
注册时间
2011-7-2 
最后登录
2016-2-5 
26#
发表于 2011-7-13 13:56 | 只看该作者
good summary darlia

One more point in Private Exchange Fund -
unrelated investor who purchases the same security.

TOP

liangfeng

UID
218211 
帖子
659 
主题
120 
注册时间
2011-5-26 
最后登录
2012-9-12 
27#
发表于 2011-7-13 13:56 | 只看该作者
One security? or many different types of low basis securities?


I am confused.

I thought there are many different types of securities, I mean company A, company B......then they pull together to diversify, because they diversify, thus sharing gain and loss together. At the end of the fund, they just pull their part and go home.



Am I correct?

TOP

NakedPuts2011

Rank: 2

UID
222288 
帖子
321 
主题
3 
注册时间
2011-7-2 
最后登录
2015-12-13 
28#
发表于 2011-7-13 13:56 | 只看该作者
2 keys points to remember:

1) No of securities - Public fund has investors with 'different' securities (eg. LNKD, TSLA)
Private fund has investors with 'same' (only 1) security (eg. LNKD)

2) Means of diversification -

Public funds diversify through pooling of different securities along with 20% exposure to other illiquid assets.
Private funds diversity through hedging, borrowing against hedged portfolio and then investing the proceeds into other securities.

TOP

123
返回列表