[kcowan]

Quote:

Originally Posted by milmoose ...3. A hedge fund that engages in futures strategies. Hefty fees. Ugh. 4. Investing in private businesses. Lots of time input. Would this really provide a long-term return better than a small cap fund? 6. 95% leveraged commercial real estate. Lots of property-specific risk... ...

3. I would avoid hedge funds. It has become impossible to select future winners and the field is crowded with wannabees now.
4. This can be a big winner. But you will be plagued with lack of liquidity. And if you spend time working with them, you will tend to buy into their story and lose your objectivity. Maybe talk to some Vencaps and offer your services free to their companies for shares/options. At least the conversations will provide some much needed education on their approach. Often Vencaps will churn because they are under the gun to produce annual returns. This can hurt their businesses.
6. Many people have done this successfully. Liquidity is a major problem. Watch occupancy assumptions (overstated) and cost of maintenance and management (understated).

Sounds like a good plan. Good luck with execution.