Hirschi Hart Capital Management

Greetings.  I am an investment manager and currently work as a portfolio manager for an investment firm in Southern Utah. I've learned over the years how to create an investment portfolio that outperforms the US Stock Market with less volatility.  Since 2007,  this risk parity strategy has returned approximately 24% average annual return (with 2% fees withdrawn annually) with a drawdown of approximately -27% (compared to the stock market  at -51% drawdown).  Alpha of 15% and Sharpe Ratio of 1.4. 

I would like to start a hedge fund that implements this same strategy. The industry typically requires the fund be up and running for approximately 12-24 months to verify returns before anyone will look at it, so an incubator fund is typically set up to do this.  I'm looking for a strategic partner to help fund the incubator fund. I do use futures contracts as part of the portfolio, and they can be quite expensive, so I need a minimum of $2,500,000 so that I get the correct allocation. I also need approximately $10,000 to pay for the incubator fund setup, and another $50,000 to pay for the hedge fund set up (mostly legal fees). This would be later on when the fund converts from an incubator fund to a US Hedge Fund.

Once the incubation period is over, we will launch the hedge fund officially. The investor can redeem their $2.5 Million (Plus returns) and will receive 50% of all management fees indefinitely from the fund. Management fees are an annual flat 2% of assets under management. So if we raise $100 Million, we will get an annual management fee of $2 million annually that will be split 50/50. 

While I can't guarantee returns, 70% of the portfolio is invested in US Treasuries, Gold and commodities. The other 30% is invested in some of the best US stocks.  So I'm not taking huge risks with this portfolio or doing anything extreme. I do use some leverage, but I'm leveraging a low volatility portfolio that has offsetting and uncorrelated assets. 

Lastly, I do all of the work to manage the fund, I know exactly what needs to be done.  We will hire third party administrators, auditors, and will have a small board of directors .  The investor won't need to do anything, but I would like to be introduced to other investors that you might know who we could approach for the fund.  The fund could easily manage $1 Billion or more with this structure.