What We do
#1
Invest on behalf of our clients
We make money only when our clients make at least 10% or more
What We Do
ZERO / ZERO TO TEN / 60:40 split after 10% profit
Zero management fees, no profit sharing until investors has made 10% return and only then we split the rest of the profit using a 60:40 split. We use a quantitative, algorithmic trading software with built-in portfolio diversification, hedging, and risk mitigation features. Due to extremely low overhead, we are able to offer zero cost of investment; profit sharing begins only after the investor has made at least a 10% return.
#2
Why do we charge zero management fees?
The 2 and 20 Rule is standard practice in the hedge fund
industry – a 2% management fee and 20% of the profit goes to the fund managers
regardless of their performance return. In other words, if the hedge fund loses
money, the investor will still have to pay the 2% management fee in addition to
swallowing the loss. In our view, that’s completely unfair.
Our philosophy is simple – we will make money only when you
make money! If you are not profitable, we won’t profit either. Our confidence
in the Algo is what allows us to maintain our fee structure while thriving as a
business.
You may ask, who pays
for the algorithm development? or who
pays for running the fund? These are good questions with simple answers.
First, our founders have already made the investment of researching and
developing the Algo and its implementation in the M3 Investment
proprietary software. Second, due to the fully automated algorithmic nature of
the trading, there is low administrative overhead in our company, which we have
decided to take onto ourselves as a G&A expense.
