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GreenTree Strategist Launches Fund with Unusual Fee Structure

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NEW YORK ( 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.

Mr. Rotblut, who also is the chief technical strategist for U.S. indexes at GreenTree Capital Markets LLC, said he will execute trades with GreenTree for the UBO Inc. fund.

Mr. Rotblut said he is working to secure some seed capital. Subscription to the fund is open, and the minimum investment is US$100,000. He said he would like to take in between US$3 million and US$8 million before closing the fund for a period of time to determine if it can increase its assets and still follow the trading strategy.

He declined to name his legal counsel, and said he is searching for an auditor.

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