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None of this is financial advice (because I don't have a Series [X] that certifies me with government approved knowledge of money and markets and law and stuff). It's just my opinion.
I woke up a little earlier this morning. As I checked my media, I came across this: Steve Kirsch is starting a hedge fund.
I thought that he might do this at some point, but after he lost multiple millions in the FTX debacle—after I had personally warned him about Crypto Winter (the four-year cycle that sees cryptocurrencies that can normally be traded for profit tank so hard that consistent returns turn to dust)---I thought that Steve might focus his ample energy elsewhere. Not only was I wrong, but the plan is worse than I'd imagined.
Did you know that entering the pandemic, Steve ran a cryptocurrency company? But in his own industry, he fell for the big rug pull? I wouldn't generally "rub it in" this way (and that's not my primary goal here), but he's asking for other people to trust him with large amounts of money at this moment. I'm having a hard time wondering why he set his sights on hedge fund work nearly two years ago (in mid-2021 he asked me if I wanted to take the helm of his hedge fund), and why he still thinks that's a good idea given that pandemic contagion seems to be setting into the global financial system.
It's been a little while since I updated my knowledge of hedge fund regulations, so finance peeps help me out: does Rule 506 of Regulation D not still legally prohibit advertising hedge funds to investor pools the way that Steve just did on his substack? (Note: I'm not a fan of these rules, but the point is worth understanding, as are its consequences.)
I'm going to put most of the rest of this post behind a paywall because, put simply: if you're considering Steve's fund, what I'm going to share is hard-earned experience that you should be willing to pay a few bucks to see (if you're an accredited investor, I'd call that a steal). My track record is having worked for four hedge funds (including two of the largest hedge funds), been offered the top job at several, traded 10-digits in capital (11 if you count the notional value of swaps, or more digits if you want to count in yen) in a single week, never having created a losing trade strategy or portfolio, and averaged over 400% ROI with personal funds after quitting the industry (up through the date of the inception of this substack).