Welcome to our blog.  We are using this platform to acquire further interest in our Private Fund and to provide on-going information as to what we are doing and how we are progressing in this challenging field as a Private Fund.  Currently our status is that we are seeking capital in April and May of 2012.  We will start trading our systems in June 2012.  All results posted are theoretical gains from our systems that we track hourly.  Real results could differ slightly due to slippage or other factors.  Please contact lee@kinshipinvestments.com for further information.

Another month gone and WOW, what interesting markets they have been recently.  Little volume and grinding markets.

I love just getting to the point so here are our updated systems results for our Private Fund (Month end - February 2012):

As you can see we have no problem with good results.  But, the most telling time will be when the S&P has some down months, then we will shine.  Sure, we can make money when the market is making money, but the question you and many others ask is:  Can we make money when the market is going down?

Our 2009 to 2011 results say yes.  See for yourself at http://www.kinshipinvestments.com/

We are quite happy with the recent results as the risk in acquiring our profits have a lower standard deviation than the S&P index.  Obviously the markets have been on a tear, and I am happy for people invested in the general stock market, but for us slow and steady is the game.

January results mirrored our benchmark, but February saw a choppy sideways market that provided mediocre results.  Our Volatility System shined during that time as we had a large breakdown in volatility which at times gives us a condensed large profit while our other systems don't do as well.  This is the reason we have diversified to a more volatility controlled system.

These results fly in the face of most CTA or Hedge Funds in Canada.  In fact here is the Scotia Hedge Fund Index:
http://www.scmonline.com/analytics/cgi-bin/hedgefund/entry_screen.cgi

Simply stated we kick their butt (so far :-).  Unfortunately the results only encompass to January so it will be interesting to see how we compare for February.  They always take forever in reporting previous months returns.

As promised we have further details on our fund:

Fees.

This is a critical issue that can make or break a startup fund like ours.  Potential investors see you as greedy if they do not see the value in investing when the results are watered down by fees.  Management and Performance fees cannot fly in the face of clients that do not see results.  We take this to hart.

As shown on our above result graph, we are now aligning ourselves with the S&P Benchmark historical average of 10% a year.  If we do not achieve our 0.8% accumulated return per month then we do not receive our monthly Management Fees.  Period.  If we do not reach our minimum target of 10% a year return then we also do not receive a yearly Performance Fee.  Period.  Even if we beat the market this year by 20%  as the S&P could be at minus 11% for the year and we can be positive 9%...  We would still not receive one penny of a Performance Fee at the end of the year.
Our Management Fee is 1.5%.  This is calculated by taking the end of the month capital, multiplying it by 1.5% and dividing it by 12.  Again, this is ONLY received if we surpass our accumulated benchmark of 0.8% a month.  The fine details of course is if we do not receive our fees in the first month (such as if we made 0.6% for the month), but in the next month we are above our accumulated benchmark (such as 2% for the first two months), then we DO receive our past month fees as well as the current.  In a nutshell, we do not recive our Fees if we don't make you money.  But to be clear, if we did recieve Managment Fees in the first 6 months of the year, but we ended the year below 10% then we do not 're-imburse' these fees.  Management Fees are calculated and paid monthly.


Our Performance Fee is 15%.  This is calculated by the end of the year profits minus Management Fees.  Again, Management Fees ARE included in this calculation.  So for example, if we did achieve 10% return for the year, but we incurred Management Fees during the year to pull down our TOTAL return to 9%, then simply stated we receive NO Performance Fee.

One last thing.  These terms are ONLY available to our initial investors.  Any investor we acquire after our initial starting period will have to pay the usual 1.5% and 15% fees as per usual Hedge Fund standards.  This means receiving 1.5% per year on the AUM (assets under management) no matter what our results.  We would also receive our 15% Performance Fee as long as we are above 0% for the year including Management Fees.

We are currently renovating our new home office with the highest computer and physical security we can acquire for our five computer office.  We are also creating our Power Point presentation which will be available for meetings in April.  If you have any interest in setting up a meeting in that month, let us know.  Otherwise, we will be contacting all wealth management firms on the island, some on the lower mainland, and also groups of individuals to set up our meetings.

I promise at this point there will be weekly blogs discussing what we are doing to fill in greater detail of our activities and answer some of your questions in regards to our systems.  Also we have a great amount of email correspondence that has been sent in the past that will be posted as blogs in the coming days.  Look out for those soon.  This may provide clarity about who we are, where we have been, and where we are going.

We have laid the foundation for a very unique and professional Private Fund.  I hope you will join us!

Cheers,

Lee MacFarlane
President
Kinship Investments Ltd.
cel (250-818-5330)
office (250-385-9132)
fax (250-385-9134)http://www.kinshipinvestments.com/

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