[GLBSE] YABIF - Turbulent Market, Secure Investments

[puffn]

Pirate lowering his rate did have an effect on a few of our investments. However, I believe this is just general fear on the market. Some assets are chugging along nicely though.

Bitcoin Mining Investments will begin paying out dividends in the next week or two, and this should boost share value significantly. I have had extensive conversations with Daniel on his business goals, and we have crafted a long term strategy that will be very profitable as the market transitions from GPU mining to ASIC mining.

Remember, in the event of a full pirate melt down, our total maximum loss is 3.33% of fund value. Pirate's current decline hardly touched our long term assets. In the short term however, some excess dividends held over to Monday will be kept in the fund's possession instead of being disbursed. I will release the numbers on Monday along with current NAV.

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[puffn]

Sorry for the late update today folks. My sister got married. We had our insured pirate holdings in YARR, and have lost about 2.5% of portfolio value. In order to counteract this, I have decided to suspend our IPO and our dividends. This way, you will be able to trade your assets freely on the market. It takes no genius to determine that there will be some major shifts in the market in the coming weeks. Interest rates should lower significantly now that both pirate and BDT are on the downswing. The dividend will be reinstated as soon as I can possibly can. Thank you for your patience and understanding.

[OneEyed]

Sorry for the late update today folks. My sister got married. We had our insured pirate holdings in YARR, and have lost about 2.5% of portfolio value. In order to counteract this, I have decided to suspend our IPO and our dividends. This way, you will be able to trade your assets freely on the market. It takes no genius to determine that there will be some major shifts in the market in the coming weeks. Interest rates should lower significantly now that both pirate and BDT are on the downswing. The dividend will be reinstated as soon as I can possibly can. Thank you for your patience and understanding.

If you do not reasonably think that you will be able to further go on as planned, and especially that early in the IPO, you should put a buy order at face value and return funds to the investors, and reopen YABIF when the market has settled down.

[puffn]

Sorry for the late update today folks. My sister got married. We had our insured pirate holdings in YARR, and have lost about 2.5% of portfolio value. In order to counteract this, I have decided to suspend our IPO and our dividends. This way, you will be able to trade your assets freely on the market. It takes no genius to determine that there will be some major shifts in the market in the coming weeks. Interest rates should lower significantly now that both pirate and BDT are on the downswing. The dividend will be reinstated as soon as I can possibly can. Thank you for your patience and understanding.

If you do not reasonably think that you will be able to further go on as planned, and especially that early in the IPO, you should put a buy order at face value and return funds to the investors, and reopen YABIF when the market has settled down.

This is an investment fund, not a bond. If you want your shares to never lose value, start a motion to turn this into a bond. I gave you adequate warning about how we would fair in such an event. Had something I personally did, like make a typo happen, I would cover your losses, however, a market wide phenomenon like this who's risk was apparent from the beginning is not something I will cover you for.

[OneEyed]

Where can I find the breakdown by sector, as described in the contract? How is the fund doing?

[puffn]

Our NAV is currently ~.974 BTC per share. The fund is currently holds the following percent in each sector:
Mining 79% (2 bonds, 2 Companies)
Bitcoin 12%
ETFs 9%.

We are doing fairly well, I have diversified our holdings more, and am looking for some opportunities on the market to invest 12%. Mostly, I am looking to get more funds out of mining and into businesses. However at this point, the fund seems reflect the post-pirate GBLSE market in that it is dominated by mining backed assets.

Normal dividends should return in a week or two once out NAV reaches 1.0. I will also resume our IPO at that point

[OneEyed]

Our NAV is currently ~.974 BTC per share. The fund is currently holds the following percent in each sector:
Mining 79% (2 bonds, 2 Companies)
Bitcoin 12%
ETFs 9%.

We are doing fairly well, I have diversified our holdings more, and am looking for some opportunities on the market to invest 12%. Mostly, I am looking to get more funds out of mining and into businesses. However at this point, the fund seems reflect the post-pirate GBLSE market in that it is dominated by mining backed assets.

Normal dividends should return in a week or two once out NAV reaches 1.0. I will also resume our IPO at that point

Hi.

It's been one week since the last update. What are the news?

[puffn]

Great news. NAV is up again. I think I will be able to swing a dividend on Monday. I reduced our holdings in mining issues by about 10% from our last update, and that portion along with 6%(of 12%) of our bitcoin reserves went into ETFs. I expect the dividend will shake out to be about half of a percent. I can provide a closer estimate as we get closer to the day.

Thanks for sticking with me these past few weeks. I know it has been rough.

[OneEyed]

Sorry for the late update today folks. My sister got married. We had our insured pirate holdings in YARR, and have lost about 2.5% of portfolio value. In order to counteract this, I have decided to suspend our IPO and our dividends. This way, you will be able to trade your assets freely on the market. It takes no genius to determine that there will be some major shifts in the market in the coming weeks. Interest rates should lower significantly now that both pirate and BDT are on the downswing. The dividend will be reinstated as soon as I can possibly can. Thank you for your patience and understanding.

If you do not reasonably think that you will be able to further go on as planned, and especially that early in the IPO, you should put a buy order at face value and return funds to the investors, and reopen YABIF when the market has settled down.

This is an investment fund, not a bond. If you want your shares to never lose value, start a motion to turn this into a bond. I gave you adequate warning about how we would fair in such an event. Had something I personally did, like make a typo happen, I would cover your losses, however, a market wide phenomenon like this who's risk was apparent from the beginning is not something I will cover you for.

Hi.

There is something I don't understand though when looking at the numbers on GLBSE:

Payment date	Total paid	Shares paid	Payment per share
2012-08-14 11:22	1.326	663	0.002
2012-08-15 10:42	1.33	665	0.002
2012-08-16 09:48	1.334	667	0.002
2012-08-17 11:33	1.338	669	0.002
2012-09-03 12:38	1.11276	198	0.00562

The number of shares in the fund has decreased. As far as I know, this is only possible if the fund operator buys back shares in the fund capacity, which reduces the value of the fund. I don't see that anywhere in the contract, and this also goes against the purpose of using GLBSE for an investment fund, which is to prevent withdrawals from drying up the fund liquidities.

Could you please explain how at least 471 shares out of 669 (more than 70% of the shares!) were paid back, to whom (especially if this is to you as the fund operator) and at which price, especially when you denied my request as in investor to return the funds when you chose to stop the IPO?

Since there is a lack of bids right now, I want to make it known that I am willing to buy shares back at .95 at any time. Just pm me, and I will put the bid up.

Here, you talk about putting a bid to buy shares back at .95, but you would do so as an individual, right? Doing it by diminishing the fund value would be detrimental for the other investors. Moreover, reducing the number of fund shares by exchanging private messages would certainly qualify as an "under the table deal".   

One of your selling points was the absence of under the table deals and insider trading, as well as transparency of operations (I quote those parts below for easy reference). Also, you said that a wind down of the assets would require 67% of the votes, while it appears that a wind down did occur (going from 669 shares to 198) without any motion being presented and voted.

I sincerely hope that this is all a misunderstanding on my side and that you stuck to the terms agreed to by your investors, but your lack of communication especially regarding the apparent wind down makes it hard to assert what's really going on here.

There will be no under the table deals. All shares will be issued on the open market with a maximum of a 2% discount to spot price, NAV, or 5 day average.

I will hold a large majority of my own money in this fund. I will also be taking a management fee of 3%. Dividends will be disbursed when no deals are on the market, or when shares are being offered.

No information that could lead to insider trading will be disclosed to anyone. As most of my capital will be in the fund, almost all insider trading risk will be severely limited.

A 67% approval on a motion is necessary to proceed with a wind down of assets. In the event that I can no longer continue as fund manager, assets will be disbursed according to share ownership.

Why Invest with me?

• Let me do the hard work
• Focus on safe stocks
• Transparent Operations
• Good returns
• Uncapped Returns
• Low Fees
• No off-market share sales

[puffn]

Someone wanted out at .95. I obliged them. I thought I was doing the right thing for you and your shares by letting them out below NAV. I jumped on the opportunity to do so. I apologize to all of my investors for doing so.

Also, yes, a dividend of ~.56% was paid. I project next weeks dividend to be well over 1%. A more detailed view of NAV and assets will be posted this afternoon.

[OneEyed]

Someone wanted out at .95. I obliged them. I thought I was doing the right thing for you and your shares by letting them out below NAV. I jumped on the opportunity to do so. I apologize to all of my investors for doing so.

So, if I understand you correctly (please correct me if I'm wrong), one investor, which is not you, who owned more than 70% of the shares, asked to be out and was reimbursed 0.95 BTC per share, without the other investors being asked or even told about it.

This is a serious wind down of the fund, which should have been acknowledge in a motion (which would have passed, since he had more than 67% of the votes) according to the terms of the contract. At least, other investors should have been warned, as a fund with less liquidities is probably much less efficient because of the limited leverage capabilities.

Can you clarify your offer to buy shares at 0.95 BTC at any time in the future? Will the money come from your personal wallet, or will it be a fund wind down (which, again, requires a vote as per your terms)? Reimbursing shares with the fund money may require that you liquidate assets at less than ideal conditions, and the remaining investors will suffer from this.

I'm sorry to bother you with so many questions, but the current way you are handling the fund is much too opaque in my opinion, and those questions and the corresponding answers should probably put in a FAQ in this thread. Also, I would hate to discover later from GLBSE admins that you were indeed the beneficiary of the buy back and that you concealed this information from investors.

[puffn]

.95 will be offered to any investor out of firm funds. If more than a 5 percent are requested, a motion will be raised. Does 5 percent sound fair to you? If so, I will start a motion to add this to the front page, and you can quote this for future reference. I feel that any less than 5% will just make for motion spam, and any more would fit your meaning of material change.

I'm sorry to bother you with so many questions, but the current way you are handling the fund is much too opaque in my opinion, and those questions and the corresponding answers should probably put in a FAQ in this thread. Also, I would hate to discover later from GLBSE admins that you were indeed the beneficiary of the buy back and that you concealed this information from investors.

Lets me and you work on communication together. It is a warning sign to me that you feel you need to apologize to me before asking a question.

Why don't you come up with a list of changes to how we run things and we can work out the wording, and put them up to motion.

Edit:

NAV right now is ~1.024.

~5% of assets are in Bitcoin.
~71% of assets are in Mining.
~24% of assets are in Investment Funds.

Motion raised: In the event that someone wishes to withdraw funds greater than 5% of Assets from the fund, a motion must be created.

[puffn]

Current NAV is 1.014.

~6% are in Bitcoin
~70% are in Mining
~24% are in Investment Funds

Motion will finish tomorrow. I assume it will pass, and when it does, I will update the contract. No further motions have been requested.

addendum: dividend was paid this week. More of the same coming next week. Our underlying securities are looking fundamentally sound this week. The next dividend will probably be a little lower, but I hope to surpass 1 percent per week returned since IPO soon.

[puffn]

The nav per share for this week is 1.01.

We have repurchased 8 shares since my last update. The buy back was done on the open market.

The current holdings of the fund are

84% mining related.
14% investment fund
2% bitcoin

[puffn]

It appears that there has been a recent trend in glbse motions for there to be problems with the voting. This has become apparent from the recent results for other companies in which there were more votes than there were shares. In light of this, our recent news of being bought by nyan may have been based on invalid data. Therefore, we will be waiting for news from Nefario on when this situation will be fixed. After that, we will evaluate what needs to be done as far as voting again, or going ahead with the sale.

The dividend for this week will as always be paid on Monday. Around 98% of our funds are invested in mining related enterprises. Current NAV is 1.011.

We remain unaffected by the closures of the various lending schemes, move to, goat, or obsi. Though I wish them and their investors all the best.

[Bitcoin Oz]

We remain unaffected by the closures of the various lending schemes, move to, goat, or obsi. Though I wish them and their investors all the best.

You are exposed to a different kind of risk. Your returns will be cut in half when the block subsidy goes to 25.

[Francesco]

So. I got my coins back, so maybe ther's hope also for shares? What's the situation? (what about Usagi?)

[puffn]

I have only received an email saying my coins were sent. I have not received coins, or information on my share holders.

As soon as I do have information, I will be happy to formulate a plan for ongoing operations. I imagine some sort of wind down will have to occur, though I have no idea how I will start that. Mostly, I assume that I will use personal dividends and dividends from my shares to repurchase shares over time.