discuss How about a hedge fund in domaining?

This type of pooled investment has been tried many times in the past with domains. There are really too many logistical issues to overcome IMO.

Brad

bmugford said:

Is the field really big enough for a hedge fund? There are not many large publicly traded companies in the field.

Brad

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I think he wants the fund to invest in domain names Brad, not GDDY, VRSN and TCX.

Depending on the amount of assets in the hedge funds advised by a manager, some hedge fund managers may not be required to register or to file public reports with the SEC. ... Hedge fund investors do not receive all of the federal and state law protections that commonly apply to most mutual funds.Dec 4, 2012

Hedge Funds - SEC.gov

equity78 said:

I think he wants the fund to invest in domain names Brad, not GDDY, VRSN and TCX.

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Yeah, I edited my comment.

Thanks,
Brad

bmugford said:

This type of pooled investment has been tried many times in the past with domains. There are really too many logistical issues to overcome IMO.

Brad

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Agree there just is not the interest, why would anyone with the experience want to listed to 50 people ranting, calling, emailing all the time. What we doing? We should buy this, sell that. For 2% of $500,000 Under management?

Juice not worth the squeeze.

Not worth it for 2% in my view. I have been thinking of a similar idea but the issue is people don't trust domain names as investments. It takes too much convincing. Long term there will be funds that invest in domains but the I think the market is not developed and liquid enough for this to happen not for another 5 to 10 years.

Arpit131 said:

Does it already exist and we don't know about it,

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Hi

yes, it already exists

it's called pay per click



same concept, except you put your names in the pot, and get cash out.

imo...

Arpit131 said:

Point out some of the downsides/risks, negatives or obstacles in operating such a fund.

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Exhibit A: https://www.namepros.com/threads/domain-investing-and-website-development-group.977386/
Exhibit B: https://www.namepros.com/threads/reviews-of-baseballworlds-investing-and-development-group.1003582/

against hedge,but egregious terrible examples

What about Exhibit C, by the true OG’s domaining who’ve done big money deals, own valuable names not scammer 40k likes from “Contests and Online”, “breakroom”.

baseballworld is scammer fake, hurt industry

but should not hinder innovation progress

I do love the idea, however
Selling Domain partial ownership;

Such a system would liquidity assets that might not sell for a while. It will also allow investors to own a part of domain names they might otherwise not be able to afford.

https://www.namepros.com/threads/shares-of-nnr-com-sold-out-go-here-for-more-opportunities.1166612/

More coverage; https://domainnamewire.com/2019/12/02/a-fractional-domain-ownership-idea/

wish people would stop using loser as reason; @baseballworld “most likes” owned nothing, hence the need to steal, he’s still Hurt industry, innovation and progress, everytime his name is invoked

am against hedge fund idea, but try harder,
we need to forget about him. let past be past

equity78 said:

Agree there just is not the interest, why would anyone with the experience want to listed to 50 people ranting, calling, emailing all the time. What we doing? We should buy this, sell that. For 2% of $500,000 Under management?

Juice not worth the squeeze.

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That $500k was just an example. Could be $5M or more. Like a fund managing that. A 2% on a $5M makes sense though. But it's subjective too. Anyway, the context is a pooled investment in domain names with a manager generating profits for the investors.

It's usually 2% of the fund size and 10% or something of the profits made, above the desired levels.

-AR- said:

Not worth it for 2% in my view. I have been thinking of a similar idea but the issue is people don't trust domain names as investments. It takes too much convincing. Long term there will be funds that invest in domains but the I think the market is not developed and liquid enough for this to happen not for another 5 to 10 years.

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Yes, liquidity seems to be a concern.
It's usually 2% of the fund size and 10% or something of the profits made, above the desired levels.

Samer said:

What about Exhibit C, by the true OG’s domaining who’ve done big money deals, own valuable names ...

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Good point, some investors are blinded by a fund manager’s OG celebrity status. The manager’s record, intent and ethics are not scrutinized and associated written contracts are glossed over. This may lead to fraud/failure/loss of capital*, which is why most domain investors minimize external risk and avoid extra layers of due diligence by toiling alone in their own personal rock pile.

* see LTCM, Madoff, Steven Cohen, Galleon ...

Arpit131 said:

That $500k was just an example. Could be $5M or more. Like a fund managing that. A 2% on a $5M makes sense though. But it's subjective too. Anyway, the context is a pooled investment in domain names with a manager generating profits for the investors.

It's usually 2% of the fund size and 10% or something of the profits made, above the desired levels.


Yes, liquidity seems to be a concern.
It's usually 2% of the fund size and 10% or something of the profits made, above the desired levels.

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I am well aware grew up in that business. For domaining simply not worth it and there would be no one I would trust.

equity78 said:

I am well aware grew up in that business. For domaining simply not worth it and there would be no one I would trust.

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lol would you trust @Rob Monster?

Interested hear what has to say,since he too, has a finance background- and i trust him.

Samer

Samer said:

lol would you trust @Rob Monster?

Interested hear what has to say,since he too, has a finance background- and i trust him.

Samer

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We have a sort of hedge funds internally.

We allocate country funds to our country managers which they can use for domain investment. They then use the proceeds to fund empowerment programs.

We have discussed the idea of creating a sort of hedge fund platform that would hold domains in an account and give stakeholders visibility into activity and to manage gain-sharing according to a smart contract.

The domain name NameHedge.com and DNFund.com are on Epik -- owned by Epik clients not by us. DomainHedge.com is on Uni.

I do believe that there are a lot of people with more money than time. If you show them a path to yield with reasonable risk and a track record, then the money is out there.

@Ryan Colby would be a good candidate to make a "crypto domain hedge fund", for example, opportunistically buying inventory and then holding until a retail exit can be achieved.

If someone wants to develop a hedge fund platform for domain investing, happy to discuss it. We have probably given the topic more thought than most but other priorities ranked ahead.

time to try paypal (new? newish?) money pooling feature?

https://www.paypal.com/ie/webapps/mpp/money-pools

or it can be even easier with cryptos... well.. minus the volatility of course.. but hey... there is this thing of beauty called stable coins.. so i guess.. problem solved.

well.... as was mentioned before... this has been tried in various threads... as some sort of a "shares of a domain" concept.. then there were some scammers.. so people got scared...

but as far as im concerned... i'd definitely entertain idea of buying say a 10k name on say gd expired... and splitting ownership shares of it between 10 trusted good np members... we sell for 20k then each makes 1k. type of thing. its not really a complex calculation. and just takes a few members who are honest .. a bit flexible... i realize the concept of finding a few honest people can be a scary and complex idea to many people.. and in today's world who can really blame them for feeling that way... but.. i know there are great honest folk around here... and many of us have a pretty good idea who they are.

alcy said:

as was mentioned before... this has been tried in various threads... as some sort of a "shares of a domain" concept..

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I do recall seeing something along those lines on NP within the past year or two...I wonder what the status is now.

Bertrell said:

I do recall seeing something along those lines on NP within the past year or two...I wonder what the status is now.

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well.. no status really.. its up to other np members to maybe pm whoever had those ideas.. wanted to create a money pool etc.

there is probably a site or two which do exactly this.. present you with some good names.. and you can buy shares.. open an account etc.. but... im personaly wouldn't want that.. i'd prefer to deal with some np members.. have more flexibility.. more names to pick from etc..

once you find a few right people on here.. its a pretty straightforward concept from there... there are lots of names to pick from ... bin... or on auctions.. for many/most domainers its ok to tie up 1k for few years... between 10 people... for total of a 10k domain purchase.. then split profits.... and similarily to tie up 10k for one person for a few years.. is to most here more of a challenge imo.

Be sure to grab a blockchain domain name that is paired with the ICANNs based domain name. Brands will use BCDNs for in the near future all sorts of things blockchain exchange (BeX) including BeX Advertising .