Requirements
- Live track record of at least one year.
- Daily Sharpe of 1.1+ if unlevered, or 1.5+ if levered.
- Annualized alpha of 10%+ if unlevered, or 25%+ if levered.
- At least 100 bets. Stocks in the same factor are considered a single bet.
- Minimal catastrophic tail risk.
Structure
- Starting range
- $1–10 million, upsized quickly for strong performance.
- Compensation
- 15% of profits above a hurdle: the risk-free rate plus 3%, or an appropriate benchmark.
- Partnership
- After three years, top performers become full partners with an equal share of the 90% fund performance fee pool.
Additional
- You will not be responsible for operations or raising money.
- We do not have a set, tight stop loss like pod shops.
- Either party can end the agreement immediately for any reason.
- Studio intends to build lifelong relationships.