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Hi Senator, congratulations on the election results! I'm u/mywittyname with Beutsche Dank I run an index fund for senators. How it works is, you give me a cal
by mywittyname 5y ago
Hi Senator, congratulations on the election results!
I'm u/mywittyname with Beutsche Dank I run an index fund for senators. How it works is, you give me a call anytime you hear about an opportunity and my team of crack investors will look into it, making the trade if we feel it is a good fit. We currently have 200 congresspeople on board and have been beating the S&P500 benchmark by 500% annually.
It's a $1,000,000 minimum, but we can line up financing if you can't swing that just yet.
- bern4444 5y agoEven better, our fund is indexed against the positions of members of congress. Members can paper trade and we index against their decisions.
- nightski 5y agoIndex funds are typically passively managed unlike mutual funds. I'm not saying what you are suggesting is impossible, but generally it would go against the definition of an index fund.
- mywittyname 5y agoIndex funds allow for options to be traded using the underlying holdings. This is one of the ways a specific index fund can outperform (or underperform) the index. Trading options on sure things can easily generate >10,000% returns in a matter of days if the swing is large enough. All it takes is a few of these sure things a year to generate staggering returns. Imagine what you could do with $100,000 in options contracts if you knew about the next Lehman Brothers collapse. That particular event turned a $0.01 option into $50-75, the on the flip side, the manager could offer OTM puts on existing holdings that would practically nullify any loses. Granted, you don't get a LB-level event every year, but there's always a few pretty good ones each year.
- N0tAThr0wAway 5y agoIndex/bond funds are openly (all the holdings are open to public inspection) and passively managed. What you're describing is a mutual fund.