I'm trying to fundraise for a HF. One group has responded back, asking for additional information to be provided in terms of 'gross returns' and 'net returns'. That's fine. I have no issue with this.
Overall, the portfolio of 61 investments since the Vintage Month/Year of September 2021 experienced slightly over a 70% loss. The question I have is from a fund accounting perspective, Hedge Funds view a particular deal from the lens of a transaction.
If Coinbase had 3 separate investments and 1 generated a return and 2 generated losses, the roll-up doesn't go into Coinbase as a deal. The roll-up goes to the cumalative portfolio.
To respond to this organization, to further evaluate the investment process, should I send across a transaction list with the gross and net returns for each transaction, or follow the method of categorizing a deal as a Company or ETF that was invested in, list out all the transactions for that Company and ETF and the individual gross returns & net returns for each transaction, followed by a summary for the entire portfolio?
My current thoughts are while the presentation would look organized to have a 'deal' categorized by Company with transactions listed underneath, the individual transactions themselves are whats important and I should be able to send a list across without all the transactions being accounted for under a company.
How have others within HFs done with when reporting to LPs on performance?
Comments (5)
Bump. This is the stuff I want to see on this forum, grabbing my popcorn and coke while waiting for replies.
Is this a troll post? Raising a fund with 70% losses?
Lmfaoooo. He glossed over it like it was nothing. 🍿🍿🍿
Am i too stupid to understand this question? As a follow up, why did the LP want to hear more after you told them the return has been -70%? As a second follow up, how the hell do you sell an investment product when the returns are that bad?
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