Performance-Based Investment Fund

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Performance-Based Investment Fund

Inspired by a conversation on:

Top Traders Unplugged

Top Traders Unplugged

SI367: Portfolio Design in a Distorted World ft. Andrew Beer

Host: Niels Kaastrup-Larsen

Timestamp: 01:06:00 - 01:08:00

Listen to Episode • View Podcast • All Ideas from Top Traders Unplugged

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Feather Flow

Direct Quote

"If you're talking about $50 billion of capital leveraged five times with, and we're going to go through the kinds of market gyrations that we've seen, the kinds of regime shifts."

Market Gap

Investors need more transparency and performance accountability from funds.

Investors are increasingly frustrated with traditional investment funds that have opaque fee structures and inconsistent performance. The lack of accountability in investment strategies can lead to dissatisfaction, especially when funds fail to deliver returns that match their promised performance. This issue is exacerbated in turbulent market conditions where many funds may not perform as expected. Investors seek a more transparent model that aligns fund performance directly with investor returns, ensuring that fund managers are held accountable for their performance.

Summary

This idea focuses on creating a performance-based investment fund where fees are directly tied to the returns generated for investors. The fund will implement a transparent fee structure that charges lower management fees but takes a higher percentage of profits when performance exceeds a certain benchmark. This model incentivizes fund managers to perform better, aligning their interests with those of the investors. By focusing on transparency and performance accountability, this fund could attract investors who are wary of traditional fee structures while also encouraging fund managers to optimize their strategies for better outcomes.

Categorization

Business Model
Investment Fund
Target Founder
Subject Matter Expert
Difficulty
Medium
Time to Revenue
6-12 months
Initial Investment
$10,000 - $100,000

Potential MRR (18-24 months)

Conservative
$10,000 - $20,000 MRR
Moderate (Most Likely)
$30,000 - $60,000 MRR
Optimistic
$70,000 - $150,000 MRR

* Estimates assume solo founder/bootstrap scenario with competent execution

Scores

Clarity
8/10
Novelty
6/10
Feasibility
7/10
Market Potential
8/10
Evidence
6/10
Overall
7/10
Found on September 27, 2025 • Analyzed on September 27, 2025 5:12 AM

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How should I validate this investment fund idea before building it?

2:34 PM

Great question! For a investment fund idea like this, I'd recommend starting with these validation steps:

  1. Customer interviews: Talk to Subject Matter Expert to understand their pain points
  2. MVP approach: Build a simple landing page to test demand
  3. Competitor analysis: Research existing solutions and identify gaps

Would you like me to help you create a specific validation plan for your medium difficulty idea?

2:35 PM

Yes, and what about the technical implementation? Should I build this myself or hire a team?

2:36 PM

Based on your idea's complexity and 6-12 months, here's my recommendation:

Technical Strategy:

  • Start with no-code tools for rapid prototyping
  • Consider your technical background and available $10,000 - $100,000
  • Plan for scalability from day one

I can help you create a detailed technical roadmap and resource allocation plan...

2:37 PM

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