Yesterday we saw another another milestone for our investment group. Our doors opened to investors in May of this year, and this week saw our first batch of investors double their initial contributions. Being an actively managed fund, we have beaten the progression and payout rate of most bond and loan offerings available. I am incredibly proud of what we have done and the visibility we have given to group trading.
Thank you very much to our investors and readers who have supported our efforts so far; we hope to continue to provide this valuable service to the greater population in the future. I hope this motivates other groups to see if this is a viable isk-making method for them in order to pursue more activities in the game.
For those willing to take on such a project, I’ve discovered a few things to keep in mind to increase the chance of success in your operation.
- Enjoy what you do – It’s true that trading scales incredibly well and is a reliable way to make isk in the long term. However, you will be more successful if you actually find that gameplay fun and entertaining. You will engage in the activity more consistently and will not be afraid to take risks every now and then.
- Don’t be afraid to engage others – Seek out other players that will be willing to join and support you in your endeavors. There’s nothing wrong with losing a bit of efficiency in the beginning if you end up having a group to conduct your activities. This will be more advantageous in the end, in that you will have a larger pool of new ideas and points of view.
- Manage your expectations – Be realistic with your capabilities and the resources at your disposal. Starting with modest gains is acceptable as long as you enjoy doing it.
- Be open to new ideas – Almost all of the changes we implemented in our operation were actually suggested by one of our investors. Be humble, and objectively assess the recommendation to see if it’s a fit for your particular style.
Looking to the future, I hope to see an assessment of the current market visibility and mechanics from the developers. I am aware of CCP’s limited resources but I still feel that it is worth investigating, especially as we enter the era of Alpha clones. The influx of genuinely new players will highlight the complexity of our market system compared to other games, and may demand some attention to ensure that it is more easily understood and manipulated.
INVESTOR GROUP UPDATE
We will be adding a service to our investors that was born out of a request. One of our investors had a project that required an injection of isk. Instead of withdrawing some of the funds he had contributed, we agreed for him to take out a loan from our trading funds. It was simple enough to execute, since the operation worked out of a single corp wallet, and we have been working together for a few months now. However, this presented an opportunity to leverage the resources that we had.
Relative to the size of the funds, the loan was sizeable, but there were some things that worked to make the transaction run more smoothly. In order to retain our ability to continue with our trading operations, the compound interest (past and present) due for this account will be taken as loan repayments. Since this investor already had a fair amount of compound interest built up in the wallet, we can think of this as a partial withdrawal of the interest accrued, plus an advance on future interest payments.
We are very happy to offer the same loan conditions to all of our investors regardless if they are in the compound interest plan or not. In both cases, their contributions are already in play and serve to act as collateral. I am very pleased with this accidental discovery of functionality within the group and encourage all of our investors to participate if they so desire. Of course, all loans will be interest-free.
Unfortunately, this loan offer cannot be extended outside of the investment group, as we can’t protect the assets of our investors without some form of collateral. However, I am keen to hear from those more knowledgeable on the subject to see if we can refine it further. The organic evolution of our process is astounding, but I have to ensure the integrity of our operation. I cannot help but wonder if we are slowly but surely working our way towards offering the services provided by a bank, even if it is a private one.
Now let’s see how we did this trading week.
The news of the PLEX / Skill Injector parity was not felt negatively in our transactions. If anything, the margins of these items actually seemed to widen outside Jita 4-4. Our aggressive stacking of injector buy orders served to actively engage this market throughout the week.
Not since the early days of our operation have we exported so much from Jita in terms of gross isk value. Unfortunately this was done out of necessity, as we saw the Jita price of pirate battleships and T3 cruisers collapse. This activity can be seen in the graph above, with the distribution of profit being more even than usual across the market hubs that we use.
The added funding from the compound interest was not as overwhelming as I once thought. At our current pace, we will not need to force payouts any time soon, since we are also managing this by temporarily closing our doors to new investors until we find our equilibrium.
Thanks for reading. Good luck, and happy trading.