@seattlecyclone Thanks for creating this thread, which lead me to joining Long Angle.
In my years on MMM I never explored hedge funds on my own. On Long Angle, a group of investors seek out, question, and invest together - all optional, there's no pressure to join. But I find group due diligence better and easier than what I could do on my own, which is why I've put 1/7th of my NW in those deals. Here's the sample deal summary they show on the Long Angle website:
https://longangle.com/index.html#dealflowI got permission from the people who run Long Angle to share two details of the most recent Venture Capital deal I invested in:
Performance fee varies from 10% to 30% depending on performance
Returns of 25%/year or greater for roughly 5 years.
"25%/year or greater" meaning a range was provided and I only asked permission to share the lower end of the range: the "or greater" is my wording, not anyone else's. Note if you run the math, 25%/year for 5 years triples an investment, so calling this a 3x or greater return would also be fair.
Hedge funds charge 20% of performance, but this one charges a sliding scale from 10-30%. If they underperform, they get underpaid. I like the incentives to be aligned like this, with additional incentive for additional performance. As an added bonus, weak performers would rather be paid the standard 20% than risk taking only 10%, so adopting this approach is too risky for them.
As others might be guessing, U.S. law limits who can invest in hedge funds. I think that's part of why Long Angle limits members to those with 2.2M+ (which I'm assuming goes up with inflation). I showed a page of my Vanguard statement - without even the account number, just name, address and account value. When I asked, I was told the information is shredded after being checked.
Finally, Long Angle is where I found out about Self Directed IRAs (SDIRA). After reading a detailed, dry book on SDIRAs and what can go wrong, I opened one. So money went from my Vanguard Roth IRA into a company that handles self-directed IRAs, then into the deal, and finally sent to the hedge fund. Considering how complicated that sounds, it was far more smooth than I thought possible.
