Marketplace Scratch Pad

Now, here’s an investment

Scott Jagow Jun 23, 2009

Oh, sure, you’ve heard of credit default swaps, but what about naked red/black hedge trades? Or proprietary coin-in straddles? Or vega convergence bets? Yeah, I didn’t think so. Then, let me tell you about the opportunity of a lifetime.

It’s a new vehicle called Dangerous Fund 1 from Tinderbox Capital, LLC.

Shhhhh. Not so loud. Let’s keep this between you and me.

Tinderbox calls itself “an incendiary investment management firm” and a subsidiary of Long or Short Capital LLC.

Tinderbox spokesman Johnny Debacle says Dangerous Fund I will focus on positions that “lack defensible absolute return theses.” I know, I’m licking my chops too! Here’s more from Johnny:

“We see a clear need for an investment vehicle for people who want to lose all their money. Competitors out there have lost on average 30-40% in this cycle. We think we can lose more, especially with our so-called ‘dangerous’ trades. Our trades are dangerous because we don’t fully understand them. Frankly, we may not understand them at all. Take a vega convergence bet where we form a pair trade with options with two assets with similar, but not the same, underlying. We make that trade and we’re pretty sure something happens, we just don’t know what it will be. Does anyone? I may not have the details of that trade correct either. That is a core strength of our investment process.

We know that young risk-seeking investors demand places to put their money to work, places where they can place $10,000 and potentially lose it all. This is the niche that Dangerous Fund I will fill. We give you all the risk you will ever need and guarantee that we will potentially lose it all. Additionally Dangerous Fund I will be appropriate for investors who have too much return in their portfolio and too little risk, as it addresses both sides of that equation so that those investors can effect a proper balance.

We just need your money to fuel our fire.

Honesty. It’s like a breath of fresh air.

Seriously, you don’t want to let this opportunity pass you by. Let me know, and I’ll put you in touch with the right people.

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