[PrivFund] jdany's bitcoin fund

[jdany]

I started a bitcoin fund about 8 months ago to help some of my friends and locals to get involved in bitcoin.

I basically took a $10,000 investment in BTC, mining equipment, mining securities and local BTC sales.
I broke that investment into 10,000 $1 shares. 

I make all of the fund moves.
People are free to sell me back their stake at any time to buy out of it.
They are free to buy in (if there are any sellable shares) at the current value/10,000

I've created a few of these $10,000 pools and they've worked really well.
I've given some local people a taste of bitcoin - it's cheap enough that I have a few college kids buying in $20/$30 at a time.

The current consolidation has given some renewed interest in some of the earlier people to get involved again.

Just thought I would share.
It's been a very positive experience for everyone no matter what the market was doing.

[jdany]

The first fund I did closed out at $32,000. (320%)
All investors cashed out and I decided to reallocate my portion in starting a new pool.

The newest fund is at $12,200.

[sonysasankan]

nice!! So do you have a fixed percentage or date on when its going to cash out?

[jdany]

The pools just mimicked what I was doing with my trades. (just on a bigger scale)
So, my groups allowed me to just do what I would do - as if they weren't sitting there.
Through a private facebook group, I documented my moves and some of them actually paid very close attention.

To answer your question, every pool had a different intention. 
The Coin-Heavy pool (Which was the first one I did) we got out when BTC was at $1,000.
A good exit point, even if unintentionally.

When I'm running the fund, I find myself wishing I had cash so I could buy in an area that was cheap.  So, a fund that did 320% is an attractive liquidation. 

Things happen so fast in BTC, before people wonder about their investment, it's already turned in three directions.
The volatility is really the only thing that scares people. 
Everyone who does this with me know how speculative this is - and is closer to gambling than it is to investing.

[sonysasankan]

The first fund I did closed out at $32,000. (320%)
All investors cashed out and I decided to reallocate my portion in starting a new pool.

The newest fund is at $12,200.

So that's 12,200 shares of 1 USD each? Is there a minimum value?

[jdany]

The current fund is 10,000 shares at $1.22 per share. It started off $10k for 10k.
People get into a fund at whatever my daily valuation is at the time.
Same with getting out. 

These are IRL people.  So, I've had people hand off $20 at a time if that's all they could do.

[jdany]

Some of the people who went through a few of my pools actually setup a wallet and bought a few coins on their own after they got some exposure to it.

I KNOW they would have never done it on their own without experiencing it tandem-style.

Most of what people think they know about Bitcoin is terribly wrong. 

[sonysasankan]

ah... ok... sounds interesting. Is there a website or a platform or something like that showing the daily valuation? Like if I put buy 100 shares now and a month later, want to cash out, how is the value determined?

PS. Sorry for all the noob-like questions. I'm fairly new to this

[Elvis Trout]

Have you run a successful fund in a non bubble situation? Sounds like you lucked out with 320% gain.

[jdany]

The fund holds
Cash
BTC
Securities
Mining hardware.
Localbitcoin sales

BTC is valued by Bitstamp
Securities are valued by Havelock
Mining hardware is very conservatively valued
Localbitcoin sales are exchanged immediately for new coins at current price.

I keep it very simple.  I update spreadsheets a few times a week.  
Immediately if someone needs to sell.
The practice keeps it very interesting.

[jdany]

Have you run a successful fund in a non bubble situation? Sounds like you lucked out with 320% gain.

Nope.  I got started right after the $300 bubble.
April 2013 I started mining.
Investing pretty heavily since July.
Started these funds in Aug & Sept.

I would say we got totally lucky on the $1,200 bubble.
I think a more responsible return of 30-40% is what I expected from a volatile, risky investment like BTC.
So, while I am happy about 320% - It was good fortune, not savvy that landed us there.

But, We're sitting very pretty right now even after this huge consolidation.
And I think the intention of giving some people a very positive experience has been achieved.

[jdany]

Not at all.
These are all people I know.

[MilkyWayMasta]

The fund holds
Cash
BTC
Securities
Mining hardware.
Localbitcoin sales

BTC is valued by Bitstamp
Securities are valued by Havelock
Mining hardware is very conservatively valued
Localbitcoin sales are exchanged immediately for new coins at current price.

I keep it very simple.  I update spreadsheets a few times a week.  
Immediately if someone needs to sell.
The practice keeps it very interesting.

What to do you charge to do this? This sounds interesting and it may be something I would like to do with those closest around me as well. Just wanted to know what you think is fair in terms of compensation. Do you tell them that it is really risky?

[jdany]

I considered running it like a real fund - charging a management fee, or something.
But, I made bigger returns on my investment because of the new money that would flow into the fund - that it was sufficient to justify the extra hassle and liability.

In fact, I probably worked a little harder at making better calls becuase other people's money was at stake.

Yes everyone had a huge warning and disclaimer - Honestly, I find it hard to believe how eager these people were after the picture I painted for them in the worst case scenario.

[jdany]

Another user was interested in how my funds work.
I put a quick spreadsheet for the upcoming May fund.  If anyone wants to see how it comes together.
It doesn't have any investors involved.  I am simply loading it up and getting it packaged pretty for the next round.

https://docs.google.com/spreadsheets/d/1Vo5sX7ugZgesnm2G6uNMTAe9I0c-zNM5MAoswP-_uu4/edit?usp=sharing

[jdany]

If any smaller investors are interested in a few hundred shares, send me a message.
I'm using the last couple weeks of April to run some tests - and see if my fund has a market.

Price right now is 100 shares for 0.208 BTC

[sonysasankan]

If any smaller investors are interested in a few hundred shares, send me a message.
I'm using the last couple weeks of April to run some tests - and see if my fund has a market.

Price right now is 100 shares for 0.208 BTC

Cool I'm in for a 100 shares. Will take about 2-3 days though. Will PM you once sent. The results of the test run will be shared I hope

[jdany]

Absolutely.  Hopefully in a big way!

Thank you!

[kittucrypt]

Absolutely.  Hopefully in a big way!

Thank you!

Interesting. Where are you based?

[jdany]

In the US - Ohio