Exciting front on the hedge fund side of it. I just sent an email to engage the lawyer I decided upon. He works for Jackson Walker (one of the big Texas law firms), used to work for Akin & Gump, and is going to cost me a small fortune but he knows his stuff. I have a call with a broker tomorrow. Apparently they do a bunch of due diligence as well which can take a month or more. After that I need a third party administrator and an auditor. I met another potential investor this weekend who showed alot of interest in investing in my fund. In general I am hoping all this market volatility does not pull some money I thought I would have a good chance at getting but I am doing fairly well in all this so hopefully it does not hurt me. My goal is still November 1st which seems to be fairly realistic.
Other thoughts: SRS. It is essentially an ETF that tracks the Dow Jones Real Estate Index which is an index of reits. It does not track it as a long though but as a short and it is 2x levered. So if the index goes down 1% SRS goes up 2%. Fairly interesting if you just want broad index exposure on the short side. Thought it was interesting and not sure if I want anymore short exposure but it seems to be a good one. Reits valuations got so out of whack into '06 and into '07 that it still may have a way to go. Just look at Thornburg today. Good grief. That was actually a short I had six months ago and took a loss on to short DSL. DSL as a short has done wonderful but you can see I obviously made the wrong decision on a relative basis.
My friend sent me this paragraph in an email earlier today. It may show how sad I am that I thought this was so funny:
"I am not a statitician but the claims of 20+ sigma events last week seem quite crazy. The joke I haven't seen anyone make is that a 2 sigma event with 10x leverage is not equal to a 20 sigma event." - thanks Ron
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