UPDATE AND REPORT
Going to do a report now. The fund has appreciated significantly - and without doing a report it's hard to set a tight spread. The reason for that is because I report adjusted NAV/U (NAV/U less projected management fee) but I have to set Ask price based on unadjusted NAV/U - or anyone buying in would reduce the NAV/U (and also Adj NAV/U) for existing investors. When the fund's up over 10% (as it is) that adds over 1% to the spread. It's made worse this time, as the adjusted NAV/U is actually artifically low as a decent chunk of the "profits" are ones caused solely by the exchange-rate change, upon which no management fee is due. So I end up pricing Asks too high.
SPREADSHEET
![](https://ip.bitcointalk.org/?u=http%3A%2F%2Fimageshack.us%2Fa%2Fimg194%2F4148%2Fatf201012.gif&t=665&c=bZeAjyV9uBeVyg)
SUMMARY
The fund's grown back nicely over the 4 days or so since we received back our GLBSE funds and started trading again. I'd guess about half the growth is down to the exchange-rate change and the other half actual trading profit (will calculate exact figures as I type this report).
Just to clarify about our GLBSE funds: we were in the first batch paid who received back 100% of BTC from GLBSE. We weren't in the batch who received 90% (some got it twice). So we don't have any over-payment to return or anything.
Exchange-Rate : .00685
NAV/U : 8.87679642
Adjusted NAV/U : 8.752765997
From the spreadsheet it can be seen that I'm enttled to 5.8 units as management fee, however (per contract) that needs to be adjusted down to address the fact that the exchange-rate dropped a lot, so a lot of the "profit" for this period isn't down to my trading and I shouldn't receive a management fee for that portion. Here's the calculation for it:
Exchange-rate at last report was .0078
HWM at that point was set at 7.63649216 LTC
Converted into BTC (at the rate then) that is .0595646388
Current NAV/U in BTC if the exchange-rate still were .0078 is .06577216
So the gain per unit (in BTC) if exchange-rate hadn't changed is .00620752
Multiplied by 409 outstanding units that's 2.53887615 BTC
10% of that profit is .253887615 BTC - the actual management fee I'm due.
That's now converted back to LTC at the CURRENT exchange-rate (as the units are being paid now) and is 37.063885 LTC
That should actually be divided by a corrected adjusted NAV/U (which would lie between the reported NAV/U of 8.876 and the reported adjusted NAV/U of 8.75) but luckily it's pretty clear that rounded down it'll be 4 units (4*9 < 37 so we know it's 4+), so it saves a bit of nasty math.
Double-checking this, with the old exchange-rate plugged in, the spreadsheet shows a management fee of 3.9 units (based on valuation in LTC). Why the difference? Well, the precise calculation of what amount of profit is down to management fee (by the method I'm using) will vary depending on whether it's done in BTC or LTC. BTC was chosen in the contract as, at that point, the bulk of our trading was done on GLBSE and so was denominated in BTC. Thus using BTC as the base currency to revalue to exclude exchange-rate impact made sense. Now the situation is less clear - as we have a small majority of our assets LTC-denominated, though at times (e.g. yesterday when exchange-rate hit a low) we still have a majority BTC denominated.
Any calculation will only be approximate. We can do a simple check to see if it's in the right ball-park as follows:
NAV has increased by 16.24%
LTC has weakened by 12.1%, but under half our assets were in BTC at the time (and that valuedropped during the week) so very clearly this accounts for well under half the growth in the fund (the holdings denominated in LTC aren't impacted at all by the exchange-rate change).
I will therefore be taking 4 units as management fee as per the calculation done according to the contract.
With those units added into the spreadsheet we end up with a new NAV/U of 8.79082261.
That's slightly higher than the adjusted NAV/U at the beginning of this report due to me only taking 4 units instead of the 5.8 the spreadsheet was assuming. HWM is now also adjusted to that value (and, of course, that is also the current Adjusted NAV/U).
Bidding at 8.45
Asking at 9.1