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February 17, 2004 at 07:00 PM
NEW YORK (HedgeWorld.com)-If Jef Rotblut doesn’t generate positive returns with his new UBO Inc. Alternative Investment Fund, he won’t charge investors a dime.
If he does, however, investors will hand over 50% of any profits generated.
The 0% management and 50% performance fee arrangement may be unusual, but Mr. Rotblut said it’s the best deal for him and for investors. If he doesn’t do his job, he said, he doesn’t get paid.
“There are plenty of guys out there who will gladly collect two and twenty” and be content with the steady income of the 2% management fee, Mr. Rotblut said. “We’re much more aggressive.”
That aggressiveness is reflected in the fund’s trading strategy, which takes short-term long and short positions in U.S. index futures to ride market trends, Mr. Rotblut said. To find those trends and make the trades, the fund will use TrueTrend, a proprietary trading system.
