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Attention My Friends - I have an idea here

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solarv
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Attention My Friends - I have an idea here

Postby solarv » Thu, 02 Oct 2008 9:38 pm

Hi Friends,

I have a humble business idea here I would like to share with someone who has the vision. I'm looking for partners with different skillsets that could assist in setting up a long only equities investment fund specialising in undervalued financial companies including banks, insurance & reinsurance companies trading at distressed prices.

I must stress that this is not going to be a fund that profit from active trading on various complicated derivatives. This is not my specialty. I'm a strong believer of value investing. Market has never been this crazy in the US history, many bargain hunters started to see many buying opportunities out there in the market. I'm not saying this is a good time to pick the bottom, but I believe it's a good time to slowly acquire those companies that never trade in the low end of the valuation band. It could potentially take 6 month, 1 year, 3 years or even more than 5 years to see another bull run. The good news is the safety of margin has never been this good for many decades.

What can this go wrong? With proper diversification through correlation analysis, sector allocation & territory allocation, the risk of losing should be quite minimal, unless the whole global market collapses? What is the chance? If it does happen, we all will start farming again... no one will be better off than the other...not a bad deal!

How about the upside? Do I ever have to mention? You could visualise yourself if you have the vision.

What I could offer? I'm an investment analyst working for a reinsurance company. I could provide securities analysis, financial modelling, performance evaluation, portfolio management expertise to the team. I'm also connected to the research databases of many top investment banks JP Morgan, Goldman Sachs, Morgan Stanley, Citi, HSBC & etc...

What you could offer? I'm keen on looking for partners who could offer legal advice on fund management business, portfolio management expertise, sales & marketing expertise. In the beginning stage, our focus should be on how to set up a legal framework that allows us to invest for 3rd parties within a super transparent legal framework, not how to convince others to fund the company. When idea sells itself, funding will never be an issue. I strongly believe this idea will sell.

For those who could see this happening, please PM me for further discussion. We could meet up for a brainstorming session. This could be a once in a lifetime opportunity.

Hope to hear from you.
Last edited by solarv on Fri, 03 Oct 2008 12:01 am, edited 2 times in total.

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Strong Eagle
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Postby Strong Eagle » Thu, 02 Oct 2008 9:44 pm

Sounds a lot like Warren Buffet. See if you can ask for preferred shares.

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Postby Winxkid » Fri, 03 Oct 2008 5:33 am

Strong Eagle wrote:Sounds a lot like Warren Buffet. See if you can ask for preferred shares.


Haha! You got it! he's a big fan of Warren Buffet, i presume :oops:
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MikeDirnt
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Postby MikeDirnt » Fri, 03 Oct 2008 2:00 pm

so what qualifications are you looking for? i dont have all the CFA, CFC, CFD shit but surely i can identify my own value buys. and i have been buying some stocks every month without fail
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QRM
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Postby QRM » Fri, 03 Oct 2008 2:05 pm

He must have Nigerian relatives

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tinpot_dummy
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Postby tinpot_dummy » Fri, 03 Oct 2008 3:48 pm

I like that you wish to create value. Throw some more ideas here. It can only get more interesting and fruitful.

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Re: Attention My Friends - I have an idea here

Postby RULDS » Fri, 03 Oct 2008 3:50 pm

solarv wrote:Hi Friends,

I have a humble business idea here I would like to share with someone who has the vision. I'm looking for partners with different skillsets that could assist in setting up a long only equities investment fund specialising in undervalued financial companies including banks, insurance & reinsurance companies trading at distressed prices.

I must stress that this is not going to be a fund that profit from active trading on various complicated derivatives. This is not my specialty. I'm a strong believer of value investing. Market has never been this crazy in the US history, many bargain hunters started to see many buying opportunities out there in the market. I'm not saying this is a good time to pick the bottom, but I believe it's a good time to slowly acquire those companies that never trade in the low end of the valuation band. It could potentially take 6 month, 1 year, 3 years or even more than 5 years to see another bull run. The good news is the safety of margin has never been this good for many decades.

What can this go wrong? With proper diversification through correlation analysis, sector allocation & territory allocation, the risk of losing should be quite minimal, unless the whole global market collapses? What is the chance? If it does happen, we all will start farming again... no one will be better off than the other...not a bad deal!

How about the upside? Do I ever have to mention? You could visualise yourself if you have the vision.

What I could offer? I'm an investment analyst working for a reinsurance company. I could provide securities analysis, financial modelling, performance evaluation, portfolio management expertise to the team. I'm also connected to the research databases of many top investment banks JP Morgan, Goldman Sachs, Morgan Stanley, Citi, HSBC & etc...

What you could offer? I'm keen on looking for partners who could offer legal advice on fund management business, portfolio management expertise, sales & marketing expertise. In the beginning stage, our focus should be on how to set up a legal framework that allows us to invest for 3rd parties within a super transparent legal framework, not how to convince others to fund the company. When idea sells itself, funding will never be an issue. I strongly believe this idea will sell.

For those who could see this happening, please PM me for further discussion. We could meet up for a brainstorming session. This could be a once in a lifetime opportunity.

Hope to hear from you.


There are already companies here in Singapore that do what you want to do. One of them is called 3 Degrees in Singapore that specializes in Distressed Debt and has done very very well. Instead of trying to start up a company, you might want to join a business that specializes in distressed debt. I say this because you will need a lot more than just some partners and so forth. To buy even small business you will need 10-15 Million for one purchase and you will want a diversity in your portfolio so you will want at least 4 or 5 different companies. Raising capital is difficult right now, even for solid funds. People are in hoarding their money right now. Starting up a fund is difficult if you are trying to come in on the outside.

Anyway....good luck.

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solarv
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Postby solarv » Fri, 03 Oct 2008 9:09 pm

Distressed debt and distressed private equities are out of the picture here. We will only focus on equities trading at distressed prices with attractive valuation.

Many people with CFA, CPA,... might not neccessarily have the idea of value investing. Basically, I'm looking for ppl who share the same vision (value investing). If you have some legal contacts, that will be cool.

PM me your MSN so that we could have a more fruitful discussion over the internet.


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