Comments on: Lookin’ Out for the Little Guy http://www.manypeaks.com/2006/12/20/lookin-out-for-the-little-guy/ Trading thoughts & insights from an Absolute Return portfolio manager Sat, 22 Nov 2008 07:42:39 +0000 http://wordpress.org/?v=2.0.5 by: BWV http://www.manypeaks.com/2006/12/20/lookin-out-for-the-little-guy/#comment-87 Fri, 05 Jan 2007 05:32:48 +0000 http://www.manypeaks.com/2006/12/20/lookin-out-for-the-little-guy/#comment-87 That is great news, Rem.. where did you hear about this existing investor thing? You are in this line of work, so I don't doubt you! One thing I don't understand is when Accredited Investor status is required for buying units in an LLC that's not a hedge fund. My pops' investment in Lux Capital had such a requirement.. and ours together in (gasp) Annex Records I think even required it. Must I sign up multi-millionaires to back my hot dog stand if I don't have the capital? (ie. "sell them private securities" that meet "exemption 504-something") WTF? That is great news, Rem.. where did you hear about this existing investor thing?

You are in this line of work, so I don’t doubt you!

One thing I don’t understand is when Accredited Investor status is required for buying units in an LLC that’s not a hedge fund. My pops’ investment in Lux Capital had such a requirement.. and ours together in (gasp) Annex Records I think even required it.

Must I sign up multi-millionaires to back my hot dog stand if I don’t have the capital? (ie. “sell them private securities” that meet “exemption 504-something”)

WTF?

]]> by: Remy http://www.manypeaks.com/2006/12/20/lookin-out-for-the-little-guy/#comment-86 Fri, 05 Jan 2007 03:59:21 +0000 http://www.manypeaks.com/2006/12/20/lookin-out-for-the-little-guy/#comment-86 The good news is that existing investors will be grandfathered in, so don't worry about the guys you already have on the roster. Although I don't like anything that would hurt Teewinot (or generally increase the gubment's ever-expanding reach), I see the sense of raising the limits from their previous levels. Under the old system, anyone who had a net worth of a million bucks (maybe 1.5), including the value of their home, and an annual income of $200K+ qualified. With the recent run up in the real estate market, that left a lot of new and mostly unsophisticated investors in what is meant to be the rarefied air of unregulated investing. And for every Teewinot offering a steady hand and ethical behaviour, there is a fraudster or Amaranth leveraging their natural-gas-filled face off. There are a lot of people out there with property worth a million bucks who don't know the difference. Those folks need some protection, whether they know it or not. (Of course, I wouldn't have raised the limits as much as the SEC did, but I digress.) The good news is that existing investors will be grandfathered in, so don’t worry about the guys you already have on the roster.

Although I don’t like anything that would hurt Teewinot (or generally increase the gubment’s ever-expanding reach), I see the sense of raising the limits from their previous levels. Under the old system, anyone who had a net worth of a million bucks (maybe 1.5), including the value of their home, and an annual income of $200K+ qualified. With the recent run up in the real estate market, that left a lot of new and mostly unsophisticated investors in what is meant to be the rarefied air of unregulated investing. And for every Teewinot offering a steady hand and ethical behaviour, there is a fraudster or Amaranth leveraging their natural-gas-filled face off. There are a lot of people out there with property worth a million bucks who don’t know the difference. Those folks need some protection, whether they know it or not.

(Of course, I wouldn’t have raised the limits as much as the SEC did, but I digress.)

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