Ben Michaud
Topsham, ME (USA)
Role(s):
Founder/Owner/Principal
Michaud Capital
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Startup
Location:
Topsham
Industry:
Investing
Year Founded:
2009
Number Employees:
1-10 people
Description:
My company is still in the creation idea stage. I am looking for equity investments totaling a minimum of $50 million in order to launch a value-oriented hedge fund. The legal structure would be an LLC, and the name of it would be Michaud Capital.
The hedge fund would be set up as such:
1. Bench mark is the S&P 500 - seeks to beat market in up and down years
2. 2% management fee
3. 10% performance fee for returns above AAA bond yield at beginning of year
4. High-water mark adjusted for relative performance....
- If the market declines 20% and the fund only declines 15%, the 5% relative gain means the fund is 10% in the hole as oppose to the actual 15% in the hole
- If the market declines by 20% and the fund declines 25%, the 5% relative loss means the fund is 30% in the hole as oppose to 25% in the hole.
- This structure gives the manager strong incentive to limit downside risk