Trisame Conference Presentation V4.1

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Trisame Conference Presentation V4.1

  1. 1.
  2. 2. June 2009:<br />The Federal Reserve Transparency Act would require the first audit ever of the Federal Reserve. The bill has 234 sponsors, a comfortable majority of the members of the House, and is gaining momentum. <br />The Obama administration should be delighted, given its commitment to transparency in government.<br />
  3. 3. Current situation<br /><ul><li>Global Investment Crisis
  4. 4. Portfolio Value Reductions
  5. 5. Highly unpredictable investment returns
  6. 6. Rampant fear changes investor priorities
  7. 7. Elevated Market Pressures
  8. 8. Financial Institutions Face Uncertainty
  9. 9. Liquidity issues for certain investments
  10. 10. Plight of traditional asset classes
  11. 11. Government bailouts</li></li></ul><li>Current situation (2)<br /><ul><li>ElevatedVolatility
  12. 12. Increased Portfolio Volatility & RiskExposure
  13. 13. Higherindividualinvestmentrisk
  14. 14. Precariousmarketconsistency
  15. 15. Rampant Corruption
  16. 16. Rogue Hedge Funds
  17. 17. Ponzi schemes
  18. 18. Black box funds
  19. 19. Little (if any) transparency </li></li></ul><li>HedgeFunds situation<br /><ul><li>Trust issues
  20. 20. Have rigorous standardized processes been established for:
  21. 21. Trading</li></ul>Risk Management <br />Position Entry & Exit Methods<br />InvestorFundsSegregation<br /><ul><li>Do they have a 3rd party fundadmininistrator?
  22. 22. Is the fund transparent?</li></li></ul><li>HedgeFundsother issues<br /><ul><li>Key Money Management Considerations
  23. 23. Level of Liquidity
  24. 24. How fast can I get out of the fund?
  25. 25. Risk Issues
  26. 26. How high is the volatility?
  27. 27. How much potential risk exposure is there?</li></li></ul><li>T I P <br />Transparency, Instant Liquidity and Principal Protection<br />
  28. 28. Principal Protection<br /><ul><li>Investment structure designed to provide 100% principal protection.
  29. 29. Full capital preservation for today’s volatile markets
  30. 30. Risk-Free investment funds with higher than average ROI
  31. 31. A Truly Bullet Proof Investment</li></li></ul><li>Principal Protection: Example<br />Policy: 80 - 90% of a fund’s investment capital and profits are allocated to purchase AAA rated Government Treasury Bonds.<br />Investors<br />Eprinciple guaranteed Fund<br />AAA Bank Notes<br />SP500 futures trading<br />10%<br />85-90%<br />G7 Government Bonds<br />
  32. 32. Protection levels<br /><ul><li>A fund guarantee is only as strong as its guarantor.
  33. 33. Guarantors can include:
  34. 34. Companies
  35. 35. Banks
  36. 36. AAA Banks
  37. 37. Governments
  38. 38. G-7 Governments</li></ul>1st rate fundsshouldinclude G-7 protection<br />
  39. 39. Instant Liquidity<br /><ul><li>Giventoday’s fragile investmentclimate, hedgefundsshouldprovide:
  40. 40. Efficient access to capital invested
  41. 41. Nominal redemptionfees
  42. 42. Full Liquidity
  43. 43. 24/7 redemptionprocess</li></li></ul><li>Instant Liquidity (con.)<br />The Next Generation Fund Standard<br /><ul><li>Each investor's capital is treated as a separate lot allowing for:
  44. 44. Real-time liquidation;
  45. 45. Redemptionordersfulfilledinstantaneously;
  46. 46. The underlyingmarket positions to besoldintohighlyliquidmarkets (in real time);
  47. 47. Funds to beavailable the next clearing dayready for transfer.</li></li></ul><li>Transparency<br /><ul><li>In order to establish investor trust, Hedge Funds should provide:
  48. 48. Complete transparency of all key internal & external factors
  49. 49. Ability for the investor to check all transactions / internal processes
  50. 50. First rate auditing and control oversight</li></li></ul><li>Transparency: a solution<br /><ul><li>NextGenerationHedgeFundsshouldinclude the following:
  51. 51. Complete due diligence documentation (DDQ) includingManagement Team
  52. 52. All VerifiedAncillaryentities (i.e. Custodial, Accounting, Legal, etc.)
  53. 53. Third Party Administrators</li></li></ul><li>ONLINE transparency& Accountability<br />New technologies<br />
  54. 54. A new online solution<br /><ul><li>Thanks to new technologies, we can envision a new kind of Financial world based on trust, liquidity and capital protection.
  55. 55. New breakthrough technologies combined with the essential requirement for full accountability, creates a new standard in the financial world... a standard which is anchored with full trust, liquidity and capital protection.
  56. 56. Through the interconnection of all these critical factors in the Hedge Fund chain, new benefits can be obtained.</li></li></ul><li>Problems<br />The bigpicture<br />Solutions<br />
  57. 57. With new standardizationand technologies, the HedgeFundindustrywill enter a new phase!<br />
  58. 58. It is time to takeourindustryinto a new direction.<br />
  59. 59. Thankyou !<br />Arnaud Saint-Paul<br />arnaud@joyam.info +34.678.530.343<br />& <br />Gregory Serber<br />gregory@joyam.info<br />+1.312.371.5741<br />http://joyam.info<br />

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