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Many investors may like the approach of using sentiment to invest a portion of their assets, however they cannot find the time to follow many of the moves in their personal portfolios. We have now teamed up with Global Investment Solutions, LLC (GIS), an experienced Registered Investment Advisor, to allow those interested in our approach to follow the moves we make without having to execute the trades themselves. When clients open an account, GIS executes trades in the account based on analysis from Sundial Capital Research, parent of sentimenTrader.com. Below are some frequently asked questions regarding the programs. What approach do you take to trading the programs? Many funds take big losses in illiquid instruments. How do I know that's not going to happen to me? What's the difference between a managed account and a hedge fund? Can I see your performance history? Do I have to be an "accredited investor" in order to use your managed accounts? Do you accept foreign accounts? What is the minimum investment? Do you "eat your own cooking"? How much of my total portfolio should I place in the programs? How do I contact you for more information?
What approach do you take to trading the programs? You can find more
information on the managed accounts by reading the
background brochure
(requires Adobe PDF viewer
I've read a lot about hedge funds straying from their intended purpose. Where is my money going to be invested? Global Investment Solutions, LLC (GIS) is an investment advisor and does not have custody of client funds. GIS only has management authority over client accounts. When clients decide to hire GIS as their investment advisor, they are instructed to open an account in their own name with a brokerage firm for custody and trade execution services. GIS does not receive any compensation from the brokerage firm for commissions charged for trade execution.
Many funds take big losses in illiquid instruments. How do I know that's not going to happen to me? One reason investors shy away from hedge funds is that they don't know what the fund is doing with their money. Managed accounts are different in that you have complete and total access to your account at all times, 24 hours a day, 7 days a week. You can always see what's in your account. We cannot guarantee you will never suffer losses, of course - that's a normal part of trading and investing - but we stick to liquid ETFs and mutual funds, and not esoteric derivatives.
What's the difference between a managed account and a hedge fund? A hedge fund is an entity that pools together the funds from limited partners (the investors) and a general partner (the advisor). The limited partners have no control over the account and generally only receive periodic performance updates and access to their capital. Managed accounts are separate accounts for each investor - no money is pooled together. Investors have complete access to their accounts at all times, so there is 100% transparency as to what the advisor is doing. Investors may deposit or withdraw funds from their accounts at any time - there is no lockup period. When you appoint GIS as the advisor, you sign a limited power of attorney for trading management of the account only.
Can I see your performance history? Any available history can be requested by contacting GIS.
Do I have to be an "accredited investor" in order to use your managed accounts? Yes and no. For the "Exclusive ETF" program, you must have a net worth of $1.5 million or be willing to place at least $750,000 under the direction of GIS. For the "Standard ETF" and "Standard Rydex" programs, you do not need to be accredited.
The "Exclusive ETF" program charges a management fee and incentive fee, provided high-water mark conditions are met. The other programs charge a management fee only. Contact GIS for details or see the background brochure.
In rare cases when a particularly high-probability situation presents itself, the Exclusive ETF program may make moderate use of margin. The margin is taken in the form of leveraged ETF funds, so at no time - even in the very worst possible situation - can you ever lose more money than you put into the account.
In some situations we may use short sales in the programs. These are typically shorter-term in nature and most often used when equities are in a defined downtrend (such as a downward-sloping 200-day moving average). The short sales are made in the form of inverse ETFs, so even in the worst possible situation, you can never lose more money than you put into the account.
Do you accept foreign accounts? Foreign accounts may be accepted if the custodian that we use is able to establish an account in your name. Typically, foreign accounts will need additional paperwork to establish an account, and in addition these accounts may incur additional taxes when investing in the United States. Please contact GIS and they will get the details for your specific country.
What is the minimum investment? For the "Exclusive ETF" program, the minimum investment is $250,000. For the "Standard ETF" program, the minimum is $100,000. For the "Standard Rydex" program, the minimum is $25,000.
Do you "eat your own cooking"? It's important to have our interests lined up with investors. Jason Goepfert, President of Sundial Capital Research, personally has a majority of his invest-able assets in the managed account program. That is not a recommended portfolio allocation.
How much of my total portfolio should I place in the programs? That is an individual decision, but we stress that no one program should make up the bulk of one's investment funds. We aim to provide an outlet for capital appreciation outside of an investor's normal investments. GIS has other managed programs, including a High Yield Bond Strategy, that may help in your diversification of assets. Please contact GIS with your particular situation and they will assist in the area of diversification of your portfolio. While not exactly comparable, the Chicago Board of Trade released a study in its 2004 edition of Portfolio Diversification Opportunities that showed an account that was comprised of 41% stocks, 41% bonds and 18% managed futures (similar to our managed accounts) showed the highest return with the least volatility. It's helpful to think of separately managed accounts in terms of one's total portfolio.
How do I contact you for more information? Roger Kliminski, principal of Global Investment Solutions, can be reached via email at roger@globalinvestsolutions.com, or via phone at 1-866-547-3123 (toll-free inside the U.S.) or 1-949-660-7960 (for those outside the U.S.).
© 2001-2008 Sundial Capital Research, Inc. All rights reserved. sentimenTrader.com is a trademark of Sundial Capital Research, Inc. Sundial Capital Research, Inc. 12527 Central Avenue NE, Suite 165 Blaine, MN 55434 |
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