WEEKLY REPORT

As usual figues represent the fund's status on Sunday.




Good news is I've finally got everything transferred over to the new computer - it's amazing how fast a new computer is when you've been using an old one for a while.

Growth this week was 2.61% -  though 1% of that was due to LTC falling vs BTC.  The bubble in many securities is likely to burst before too long, so I'm having to be a bit careful not to get caught holding in something that's overpriced by 500% when it collapses.  There's no shortage of new IPOs as well - just have to be careful to pick the ones that will actually succeed (which for us means rise in price post-IPO - very few will succeed in the sense of making a profit in the long-term for investors).

I've sold another 8000 LTC-ATF.B2 (this was after Sunday so report doesn't reflect it) and moved most of the raised funds to Havelock where we will now have a presence trading as well.  I may well sell more later in the week once our next security (an Asic-Miner pass-through on LTC-Global) is ready.  I hope to have that ready for moderator approval by the weekend.  As with all pass-throughs there's minimal risk for LTC-ATF in running it - just some extra capital needed to process dividends and handle sales.

I also have some more new securities upcoming that will be run by LTC-ATF (initially two pairs - one set on LTC-Global and the other on BTC-TC).  Those are a bit different and I hope/think they'll be fairly popular (think a mix between a pass-through and DMS - though with nothing to do with mining).  Can't give more information until they're up - to avoid someone else beating me to it.

Website progress has been slow, but now the new computer's all set I'm working back on it again.  Would expect this week's report to be on the forums then subsequent ones on the new website.

Management fee of 74 units will be transferred after this is posted.
Fund's own buyback bid at .57

Actually yeah - I sold back 3000 MINING + SELLING myself (at same price as anyone else obviously).  Good guess

BTC Balance (BTC-TC)   1066.908422
11285 LTC-ATF.B1    112.93000000
Coinlenders CD 28/8    200.32546264
Coinlenders CD 13/8    101.12934983
Just-Dice Balance    173.10613987
TOTAL ASSETS    1,654.39937403
   
Outstanding MINING   48912
Outstanding SELLING   48912
Outstanding PURCHASE   2738
Effective Units   51650
   
Block reward   25
Difficulty   31,256,961
Hashes per MINING   5000000
   
Daily Dividend    0.00008045
50 days (Min Liquid)    0.00402236
100 days (Forced Close)    0.00804471
365 days (Buyback)    0.02936320
405 days (IPO)    0.03258108
400 days (Post SELLING div)    0.03217885
410 days (Pre SELLING div)    0.03298332
   
NAV Post MINING Div    1,650.24428013
NAV/U Post MINING Div    0.03195052
Days Dividend Post Div   397.16
SELLING Dividend    -         
NAV Post SELLING Div    1,650.24428013
NAV/U Post Selling Div    0.03195052
PURCHASE selling price    0.03355
PURCHASE buy-back price    0.03131
   
J-D House profit at report   2531

Report will be at usual time (right after dividend gos out and I've checked everything balances).  This is just a brief note in advance so I don't have to type it later.

A total of 5000 each of MINING and SELLING were bought back by DMS today.  The effect of that has been that NAV/U after today's dividend will be higher than they were at the start of the day (as we buy back at a bit below NAV/U).  If we have more sell-backs then I'll need to pull some of our investment out of J-D so as not to go over 10% invested there.

The sell-backs are working as intended - they provide a mechanism to prevent total collapse of prices when someone heavily dumps one or the other of MINING/SELLING (as soon as it falls a bit below sell-back price people step in to place bids and make a profit selling back pairs).

The market price has no effect on dividends.

They don't get paid as a special dividend they get added to capital - and they're added into the NAV on a daily basis not when they end.

All the time that difficulty is rising at more than a few % per week the profits from investment go to SELLING in practical terms.  MINING's dividend is unchanged - being the PPS equivalent of 1 MH/S.  SELLING's dividend is what's left over after paying MINING (whilst maintaining a 400 day dividend buffer for MINING) so any profit from investment increases the size of the dividends SELLING receives.

PURCHASE gets all dividends paid to MINING AND SELLING - so it also benefits from profits from our investments.

BTC Balance (BTC-TC)   1226.965914
11285 LTC-ATF.B1    112.93000000
Coinlenders CD 28/8    200.19229470
Coinlenders CD 13/8    101.06366410
Just-Dice Balance    172.74218403
TOTAL ASSETS    1,813.89405702
   
Outstanding MINING   53912
Outstanding SELLING   53912
Outstanding PURCHASE   2738
Effective Units   56650
   
Block reward   25
Difficulty   31,256,961
Hashes per MINING   5000000
   
Daily Dividend    0.00008045
50 days (Min Liquid)    0.00402236
100 days (Forced Close)    0.00804471
365 days (Buyback)    0.02936320
405 days (IPO)    0.03258108
400 days (Post SELLING div)    0.03217885
410 days (Pre SELLING div)    0.03298332
   
NAV Post MINING Div    1,809.33672751
NAV/U Post MINING Div    0.03193887
Days Dividend Post Div   397.02
SELLING Dividend    -         
NAV Post SELLING Div    1,809.33672751
NAV/U Post Selling Div    0.03193887
PURCHASE selling price    0.03354
PURCHASE buy-back price    0.03130
   
J-D House profit at report   2430

I was also PMed and asked to review this.  I haven't as:

1.  I haven't had time,
2.  I regularly get asked to review securities, nearly all of which are either:
 a. Mining operations.
 b. Someone who bought ASICMINER shares, made a profit on it and want to run an investment fund.

Thankfully korbman has stepped in and pointed out the most obvious problems.

I'd like to expand on one of them - the taking of a large chunk of units by the issuer.  The largest problem with this is that if the fund doesn't sell out (and it won't) the management end up holding a disproportionately large portion of the fund.

If the issuer takes 135,000 units (shares) and only sells another 62,500 then he ends up owning two thirds of the funds - meaning all investors have immediately taken a 67% loss in their capital value.  And if he then closes teh fund he gets 2/3 of all investment for doing absolutely nothing.

Using shares as a means to take a management fee is horrible practice for the above as well as other reasons.  I run a fund myself - here's how I do it:

1.  The fund begain with assets I transferred in - as it happens it was just BTC, LTC and some ASICMINER shares (this was back when they were .1 each nearly a year ago).
2.  Initial shares were sold at a fixed price - I started with a number equal to the value of the assets i transferred in - so I basically bought them at the same price as anyone else (but was able to pay with securities I held - this was necessary to remove any conflict of interest if I continued managing my own investments in parallel).
3.  My management fee is a percentage of profits.  Not received dividends or any crap like that - but actual profits.  Meaning growth above the previous High-water mark.
4.  I take my fee in units at the current NAV/U.

That allows me to expand my holdings - and at a preferential price - but without EVER diminishing the NAV/U of the holdings of existing investors.  Immediately after people bought in, each unit of theirs was backed by assets roughly equal to the price they paid (slightly less due to transaction fees on the exchange).

If you have confidence in your ability to make a profit then a structure like that is both fair to investors AND offers you a chance to make a very decent management fee.  Not only do you get the headline rate - but by taking it in units at NAV/U you additionally gain from any premium the market places on them.

Of course if you don't make a profit you get absolutely zero.  And that's how it should be when you haven't demonstrated significant experience, aren't regulated or insured etc.

Sold   201
Swapped   0
Total   201
Price   0.03366
Total   6.76566
Less Fee   6.75212868
Man Fee   0.20256386

BTC Balance (BTC-TC)   1231.365861
11285 LTC-ATF.B1    112.93000000
Coinlenders CD 29/7    203.92824826
Coinlenders CD 13/8    101.00070317
Just-Dice Balance    171.90295708
TOTAL ASSETS    1,821.12776920
   
Outstanding MINING   54032
Outstanding SELLING   54032
Outstanding PURCHASE   2738
Effective Units   56770
   
Block reward   25
Difficulty   31,256,961
Hashes per MINING   5000000
   
Daily Dividend    0.00008045
50 days (Min Liquid)    0.00402236
100 days (Forced Close)    0.00804471
365 days (Buyback)    0.02936320
405 days (IPO)    0.03258108
400 days (Post SELLING div)    0.03217885
410 days (Pre SELLING div)    0.03298332
   
NAV Post MINING Div    1,816.56078603
NAV/U Post MINING Div    0.03199860
Days Dividend Post Div   397.76
SELLING Dividend    -         
NAV Post SELLING Div    1,816.56078603
NAV/U Post Selling Div    0.03199860
PURCHASE selling price    0.03360
PURCHASE buy-back price    0.03136
   
J-D House profit at report   2246

Dividends took ages to process today - they were set correctly but didn't even start paying until :10 and then went very slowly.  Guess there's heavy load on the servers.

The first Coinlenders CD actually matured today.  I've just bought a new 200 BTC one but haven't yet withdrawn the profits (will be doing so later today - have to do it via inputs.io and haven't got that on this computer yet).  So from tomorrow there'll be a new 200 CD showing and the profit from first one will be back in our wallet on BTC-TC.

BTC Balance (BTC-TC)   1229.367208
11285 LTC-ATF.B1    112.93000000
Coinlenders CD 29/7    203.85838545
Coinlenders CD 13/8    100.93435363
Just-Dice Balance    171.08161697
TOTAL ASSETS    1,818.17156410
   
Outstanding MINING   53888
Outstanding SELLING   53888
Outstanding PURCHASE   2681
Effective Units   56569
   
Block reward   25
Difficulty   31,256,961
Hashes per MINING   5000000
   
Daily Dividend    0.00008045
50 days (Min Liquid)    0.00402236
100 days (Forced Close)    0.00804471
365 days (Buyback)    0.02936320
405 days (IPO)    0.03258108
400 days (Post SELLING div)    0.03217885
410 days (Pre SELLING div)    0.03298332
   
NAV Post MINING Div    1,813.62075081
NAV/U Post MINING Div    0.03206033
Days Dividend Post Div   398.53
SELLING Dividend    -         
NAV Post SELLING Div    1,813.62075081
NAV/U Post Selling Div    0.03206033
PURCHASE selling price    0.03366
PURCHASE buy-back price    0.03142
   
J-D House profit at report   2030

I don''t check the markets to do that myself - but anyone who notices they can buy a MINING+SELLING for less than the sell-back price of a PURCHASE if free to buy them and send them to me to receive the buyback price.

Sold   170
Swapped   0
Total   170
Price   0.03379
Total   5.7443
Less Fee   5.7328114
Man Fee   0.171984342

BTC Balance (BTC-TC)    1,233.12233941
11293 LTC-ATF.B1    112.93000000
Coinlenders CD 29/7    203.71623349
Coinlenders CD 13/8    100.86423648
Just-Dice Balance    170.27836447
TOTAL ASSETS    1,820.91117385
   
Outstanding MINING   53888
Outstanding SELLING   53888
Outstanding PURCHASE   2681
Effective Units   56569
   
Block reward   25
Difficulty   31,256,961
Hashes per MINING   5000000
   
Daily Dividend    0.00008045
50 days (Min Liquid)    0.00402236
100 days (Forced Close)    0.00804471
365 days (Buyback)    0.02936320
405 days (IPO)    0.03258108
400 days (Post SELLING div)    0.03217885
410 days (Pre SELLING div)    0.03298332
   
NAV Post MINING Div    1,816.36036056
NAV/U Post MINING Div    0.03210876
Days Dividend Post Div   399.13
SELLING Dividend    -         
NAV Post SELLING Div    1,816.36036056
NAV/U Post Selling Div    0.03210876
PURCHASE selling price    0.03371
PURCHASE buy-back price    0.03147
   
J-D House profit at report   1869

Is that 1% per week, per month, per year?

And is it actually 0.5% if you're taking half the interest as management fee?

EDIT: The devil is always in the details and you haven't provided any.  Basic information is missing such as how and when people can get their shares back.

No sales of PURCHASE today, so no management fee (200 MINING+SELLING were bought back so number outstanding dropped by 200).

BTC Balance (BTC-TC)    1,232.09872756
11293 LTC-ATF.B1    112.93000000
Coinlenders CD 29/7    203.59808900
Coinlenders CD 13/8    100.80596113
Just-Dice Balance    170.16517716
TOTAL ASSETS    1,819.59795485
   
Outstanding MINING   53718
Outstanding SELLING   53718
Outstanding PURCHASE   2681
Effective Units   56399
   
Block reward   25
Difficulty   31,256,961
Hashes per MINING   5000000
   
Daily Dividend    0.00008045
50 days (Min Liquid)    0.00402236
100 days (Forced Close)    0.00804471
365 days (Buyback)    0.02936320
405 days (IPO)    0.03258108
400 days (Post SELLING div)    0.03217885
410 days (Pre SELLING div)    0.03298332
   
NAV Post MINING Div    1,815.06081757
NAV/U Post MINING Div    0.03218250
Days Dividend Post Div   400.05
SELLING Dividend    -        
NAV Post SELLING Div    1,815.06081757
NAV/U Post Selling Div    0.03218250
PURCHASE selling price    0.03379
PURCHASE buy-back price    0.03154
   
J-D House profit at report   1847

Don't they only have 1 stock - a mining security that keeps pushing its deadlines back?  It's just a website selling shares in his own company(s) not an actual exchange.

Not sure why, but none of the embedded images in my posts are showing up on here - though they show fine in the LTC-ATF thread on the LTC forums.  Guess it's to do with the stupid anonymising that they add onto links here.

EDIT: If anyone wants to see the reports they show up fine in the LTC forum thread : https://forum.litecoin.net/index.php/topic,657.210.html
Expect the problem will fix itself fairly quickly - it was working fine half an hour ago.

WEEKLY REPORT




Sorry that this report is delayed.  I've had problems with my laptop overheating and slowing right down to a crawl.  I've bought a new one and got nearly everything transferred over to it - only problem has been with moving my copy of Office over to use the Excel spreadsheet.  Think I may have to bite the bullet and just buy a new license - as the existing one has already been used on two computers so won't validate on a third.

Only news of any significance last week was the closure of S.DICE - and hence our pass-through to it.  We made a small profit on the shares we held ourselves, but closure of our pass-through was done without fee (per the contract) so we made (and will make) no profit on the shares held by all our investors.

Profits were slim for the week : 1.33%.  We made a bit more (2.22%) in trading profit but that was cut back by LTC rising vs BTC.

With LTC continuing to stay strong vs BTC and with the closure of S.DICE meaning we have less need of funds to manage our pass-throughs I've decided to pay a dividend of 0.05 LTC per share.  That will be paid out shortly.  NAV/U will still be slightly above what it was after we conducted the share split - and we're still good for supporting the extra bonds I expect to want to sell in the near future.

Management fee of 38 units will be transferred after I post this (and before the dividend is paid).
Bid will be at .555 (reflecting -.05 for the dividend and +.005 for the ~1% we're up so far this week).

Strange thing to say.  MPEx only has a few stocks at all - if you took away THEIR top stock then there wouldn't be a lot left at all in securities trade.  And Bitfunder has its trade concentrated tighter than BTC-TC.  So why was BTC-TC singled out for that comment?   And why should a security be excluded from measures of quantity just because it's doing well?

My DMS securities aren't one of the most active ones on BTC-TC, but even they combined turned over around 4K BTC in the last 30 days.  So it's not like ALL the volume is ASICMINER.  Even without the ASICMINER securities it still does significantly more volume than MPEx.

Not that volume is a measure of anything - other than volume.  But it's undeniable that Bitfunder/BTC-TC have been expanding whilst MPEx has been contracting (it now only has MP's own securities on it).  A lot of that expansion has, unfortunately, been crap.

Website may look nice but it's horrid to use (or was when I used to trade there).  It's been runing longer than BTC-TC and Bitfunder.  It has low volume for a few reasons:

• It allows blatant scams to list.
• It (and/or the currency exchange same guy runs) have been hacked a few times.
• Operator of it changed contract for his own shares mid-IPO so noone can have any faith in his integrity (he had a minimum number that needed to be sold or the IPO would be aborted.  When that target wasn't reached he just edited the target).
• Operator is in breach of his contract with investors in his currency exchange - withholding profits that should be theirs to repay funds allegedly stolen from the site which wouldn't be their responsibility anyway even if the hacking actually happened.

Noone with any sense uses it - hence the low volume.

Havelock may be a 4th one for you to have a look at.

Just a note on buy-backs.

I DO offer buy-backs for equal numbers of MINING and SELLING - as well as for PURCHASE.  The PURCHASE ones are handled via the market, where there's a Bid up at the price listed in each day's report.  You can get the same price for 1 MINING + 1 SELLING as well, however I will only do 1 such redemption per day per person.

So if you have a bunch of MINING or SELLING and want to get out of your position, DO consider buying the other half and redeeming them via me : on occasions that may well get you more than selling what you already hold.

There is no way I can ever buy back only one type (of MINING/SELLING) as I don't define the prices for them and there have to always be an equal number of them in circulation.