WHEN LP TAUGHT ME TO INVEST IN BEANS: A PRIVATE GP TRANSFER WAS SELF-PRESENTATION

Original Odaily Daily Planet@OdailyChinaI'm not sure

Author |Golem@web3 golemI'm not sure

WHEN THE LP LEARNED TO USE AI, THE DAY OF THE SMALL PRIVATE FUND MANAGER WAS GETTING WORSE。

Two dogs@ryansoon777A YEAR AGO, HE WAS A REGULAR PARTNER IN A SMALL OFFSHORE PRIVATE DOLLAR FUND (GP) OWNED BY THE UNITED STATES, BUT LATER HE LEFT TO JOIN AN AI START-UP COMPANY。

“..SMALL PRIVATE FUND FINANCING IS DIFFICULT TODAY, AND WITH THE SPREAD OF AI, MANY INVESTORS (LPS) PREFER TO LET SOYBEAN PACKS BEAM THE STOCK, RATHER THAN RAISE MONEY FOR US。It's not the same

TWO DOGS SAID THEY CHOSE TO SWITCH, LARGELY BECAUSE THEY SAW THE SUBTLE EFFECT OF AI ON THE RELATIONSHIP BETWEEN LP AND GP. INFORMATION AND ANALYTICAL CAPABILITIES ARE OSTENSIBLY LEVELLED BY AI, LPS ARE MORE LIKELY TO QUESTION THE PROFESSIONAL JUDGEMENT OF THE GP, AND FRICTION BETWEEN THE PARTIES MAY INCREASE, LEADING IN SERIOUS CASES TO DIVESTMENT OR WITHDRAWAL。

It's a sad little dollar fundraiser

The private dollar fund, previously occupied by the dogs, has not been in a bad operational state, with assets management amounting to tens of millions of United States dollars, which is invested mainly in the High Liquidity U.S.U. and, in a small number, in encrypted asset management, with an annualized rate of return well above the threshold over the past three years。

Logically, high-quality performance, coupled with the increased demand from investors for overseas finance in the last two years, should make fund-raising less difficult, butTWO DOGS REVEALED THAT, IN FACT, SMALL DOLLAR FUNDS LIKE THEM ARE ALMOST IMPOSSIBLE TO GET AN INSTITUTIONAL LP。

THE CURRENT TOP-OF-THE-BOARD PRIVATE EQUITY FUND (E.G., CORINTH, TAKASHI AND BO-YU) IS BASED ON THE “OFFSHORE + ONSHORE” PORTFOLIO STRUCTURE, WHEREBY THE PRINCIPALS OF THE FUND REMAIN IN CAYMAN, ARE OFTEN REGISTERED AS CAYMAN ISLANDS EXEMPTION CORPORATION OR CAYMAN SPC, WHILE THE PRINCIPALS ARE LOCATED IN HONG KONG OR SINGAPORE。

HOWEVER, IN RECENT YEARS, AS A RESULT OF CHANGES IN THE REGULATORY AND FUND-RAISING ENVIRONMENT, THERE HAS ALSO BEEN AN INCREASE IN PRIVATE DOLLAR FUND-RAISING BASED SOLELY ON HONG KONG LPF OR SINGAPORE VCC OFFSHORE STRUCTURES。

THE SMALL DOLLAR PRIVATE FUND, TO WHICH TWO DOGS BELONG, CONTINUES TO USE THE MOST “ORIGINAL” DOLLAR FUND STRUCTURE, THE CAYMAN SPC+BVI (BRITISH VIRGIN ISLANDS) FUND MANAGER STRUCTURE。

ONE OF THE REASONS WHY THE FOUNDATION INDUSTRY OFTEN SAYS THAT THE STRUCTURE OF THE LP, THE DOMESTIC HEAD OF THE DOLLAR PRIVATE FUND, IS STILL HOLDING THE “CAYMAN” HOSTAGE IS THAT THEIR OVERSEAS LPS, INCLUDING THE AMERICAN UNIVERSITY ENDOWMENT FUND, THE MIDDLE EAST SOVEREIGN WEALTH FUND, AND THE EUROPEAN LARGE FAMILY OFFICE, HAVE BEEN FAMILIAR WITH THE CAYMANIAN ARCHITECTURE FOR DECADES, AND THAT THE CONTINUATION OF THE TOP PRIVATE DOLLAR FUND HAS HELPED TO REDUCE COMMUNICATION AND TRUST COSTS。

BUT SMALL DOMESTIC PRIVATE DOLLAR FUNDS, ALSO IN CAYMAN, ARE UNLIKELY TO BE FAVOURED BY THESE TOP INTERNATIONAL FUNDING, AND THEIR LP SOURCES REMAIN PREDOMINANTLY IN ASIA, LEAVING THEM IN AN AWKWARD POSITION。

From an Asian perspective, the main sources of money behind the private United States dollar fund come from private activities, mainland China (off-shore funds), local family offices in Hong Kong and Southeast Asian rich people。

EVEN SMALL DOLLAR PRIVATE FUNDS OF THE SAME SIZE, THESE CIRCLES HAVE A NATURAL SENSE OF PROXIMITY AND SECURITY FOR HONG KONG OR SINGAPORE, SO THEY PREFER TO VOTE FOR HONG KONG LPF OR SINGAPORE VCC RATHER THAN CAYMAN SPC。

In addition to the fact that the structure and size of the Fund limits the availability of such small dollar private funds, differences in the investment strategy of the Fund make it difficult for the two dogs to raise funds。

IN THE INVESTMENT STRATEGY ADOPTED BY PRIVATE FUND-RAISING, THE MAIN DISTINCTION CAN BE MADE BETWEEN SUBJECTIVE STRATEGIES, I.E., WHAT IS BOUGHT AND SOLD BY THE GP ON THE BASIS OF ITS OWN RESEARCH, EXPERIENCE AND JUDGEMENT. AT THE HEART OF THE PROFIT IS THE ABILITY OF THE FUND MANAGER TO UNDERSTAND THE MARKET; AT THE HEART OF THE QUANTITATIVE STRATEGY, THE LOGIC OF INVESTMENT IS WRITTEN INTO MATHEMATICAL MODELS AND PROGRAMS AND TRANSACTIONS ARE CARRIED OUT BY THE AUTOMATIC OR SEMI-AUTOMATIC HIGH FREQUENCY OF THE PROGRAM, AND AT THE HEART OF THE PROFIT IS THE STATISTICAL PATTERN ADOPTED BY THE MODEL。

“..IT'S EASIER FOR A FUND IN THE MARKET TO USE A QUANTITATIVE STRATEGY THAN A SUBJECTIVE APPROACH TO FUND-RAISING, ESPECIALLY WITH AI'S ABILITY TO DO SOTwo dogs said, especially in DeepSeek (Odaily Note: Incubated by the Quantified Fund's Quantified Quantification Team) after last year's fire, the market was more enthusiastic about quantitative strategies。

MOREOVER, THE DIFFERENCE BETWEEN QUANTITATIVE FUNDS AND SUBJECTIVE STRATEGY FUNDS IS THAT QUANTITATIVE STRATEGIES CAN GAIN CONFIDENCE IN THE DATA AND ALGORITHMS PRESENTED TO THE LP, WHICH ARE WITHIN CONTROL, WHETHER FOR PROFIT OR RETREAT, AND EVEN AS SOLID PRODUCTS, AND SUBJECTIVE STRATEGIES, WHICH ARE MORE ABSTRACT AND REQUIRE MORE COMMUNICATION COSTS FOR THE GP TO FULLY ACQUIRE LP TRUST, ESPECIALLY IN THE EVENT OF A MAJOR RETREAT, WHERE THE LP CAN EASILY QUESTION THE ABILITY OF THE GP TO INVEST。

As a result, the space for small dollar private funds such as the two dogs in the country, which had previously served, had been reduced by circumstances, making fund-raising increasingly difficult。AND THE ONLY BIG LPS IN THE FUND ARE ASKING WHETHER AI'S "INVESTMENT CAPACITY" IS WELL ABOVE THE GP

"COMPLICATED" LPS

"LP USED TO LISTEN TO US BECAUSE WE WERE OF SCIENCE, BUT NOW THEY'RE GOING TO THROW OUR REPORT INTO AI, AND THEN THEY'RE GOING TO "TEACH" WHAT WE DO, AND AFTER TWO DOGS CALLED AI, THE LP THAT USED TO LOOK ONLY AT THE FINAL RESULTS OF HIS INVESTMENT HAS CLEARLY INCREASED ITS "CARE" FOR HIS INVESTMENT。

TWO DOGS EVEN GOT RID OF ONE LP. THIS IS A 50-YEAR-OLD ENTITY BUSINESS OWNER, WHO “SWEETLY” INVESTED ABOUT US$ 1 MILLION INTO THE FUNDS THAT THE DOGS WERE SERVING AT THE TIME, BUT HE DID NOT JUST LEAVE BEHIND, BUT OFTEN ARGUED WITH THE DOGS BY USING THE FRAGMENTED INFORMATION THAT HE SAW ON THE MARKET AND THE CONCLUSIONS REACHED THROUGH AI, “HE WAS VERY BAD AT HIS ATTITUDE AND THOUGHT THAT I WAS A YOUNG MAN WHO KNEW NOTHING AND COULD NOT BUILD TRUST, SO WE FINALLY CLEARED HIM UP IN COORDINATION.”

"LET'S BE HONEST, OUR LPS ARE VERY GOOD PEOPLE IN THEIR RESPECTIVE FIELDS, THEY'RE IN THEIR OWN FIELD OF AUTHORITY, BUT NOW THAT THEY HAVE AI, THEY'LL THINK THEY'VE GOT AUTHORITY IN THEIR INVESTMENTS, AND THEY'LL BE IMPRESSED."。

LP, A SMALL DOLLAR PRIVATE FUND, IS “COMPLEX” BECAUSE MOST OF THE SOURCES OF FINANCING ARE FROM A FRIEND OF THE BOSS OR AN ACQUAINTANCE. ACCORDING TO THE TWO DOGS, THEIR FUND, THE LP, INCLUDES THE HIGH NET VALUE POPULATION OF THE COUNTRY, THE ENTITY OWNER AND THE FOFOUR LPS HAVE SHANXI COAL OWNERS AND 300-400 RICH PEOPLE ON THE FORBES LIST, AND SOME LPS EVEN PLAY WELL WITH US IN THE SECOND GENERATION, SO THEY INTRODUCED HIM。It's not the same

AND THEIR RELATIONSHIP WITH THE LP IS DELICATE, AND FOR SOME LPS, THEY DON'T EVEN CHARGE A 2% MANAGEMENT FEE, BUT THEY'RE DIVIDED INTO 20% PERFORMANCE. THE MOST SIGNIFICANT FEATURE OF THIS TYPE OF LP STRUCTURE IS ITS ENTHUSIASM TO PARTICIPATE IN FINANCIAL MARKETS AND “FUNDS TO SEA”, BUT IT DOES NOT ITSELF HAVE THE TIME AND ENERGY TO LEARN AND STUDY MARKET MOVEMENTS QUICKLY。

THUS, IN A SENSE, THE CORE VALUE OF THE GP IS TO UNDERTAKE FOR THE LP THE TASKS OF INFORMATION GATHERING, MARKET RESEARCH, OPPORTUNITY SCREENING AND INVESTMENT JUDGEMENT, TO COMPENSATE FOR THE LATTER ' S TIME, ENERGY AND PERCEPTION, AND THUS TO COMPLETE THE PROCESS OF TRANSFORMATION FROM INFORMATION TO DECISION-MAKING。

HOWEVER, WITH THE SPREAD OF AI TOOLS, THE INFORMATION PROCESSING AND RESEARCH CAPACITY, WHICH IN THE PAST WAS HIGHLY DEPENDENT ON PROFESSIONAL INSTITUTIONS, IS BEING RAPIDLY BALANCED. IN ADDITION TO THE FINAL FUNDING ALLOCATION AND TRANSACTION EXECUTION, MUCH OF THE WORK IN THE TRADITIONAL FUNCTIONS OF THE GP HAS BEGUN TO BE REPLACED BY AI IN A CHEAPER AND MORE EFFICIENT WAY。

"WE LP CAN'T BE HARD TO OPEN AN IBKR COUPON ACCOUNT, AND WITH THE AID OF AI, THEY CAN BUY IT THEMSELVES. TWO DOGS BELIEVE THAT AI HAS A PARTICULARLY STRONG IMPACT ON A FUND WITH A SUBJECTIVE STRATEGY, BECAUSE INVESTMENT HAS ALWAYS BEEN RESULTS-ORIENTED, AND IF LP STEPS IN THE WIND AND PERSONAL INVESTMENT RETURNS EXCEED THE FUND, THEN NATURALLY IT STARTS TO QUESTION THE FUND'S STRENGTH。

BY CONTRAST, THE “INFORMATION EQUITY” THAT AI BRINGS HAS A SMALLER IMPACT ON THE QUANTIFICATION OF PRIVATE FUNDS AND EVEN OPENS UP THE GAP BETWEEN FUNDS。

THE PARAMETERS, ALGORITHMS, ETC. IN THE QUANTIFICATION FUND’S STRATEGY WILL ITSELF EVOLVE, AND THE ADDITION OF AI WILL MAKE THE QUANTIFICATION STRATEGY MORE RAPID. THIS IS A FIELD OF EFFICIENCY AND INTELLIGENCE, AND THE QUANTITATIVE STRATEGY THAT ORDINARY PEOPLE WITHOUT EXPERTISE IN MATHEMATICS, FINANCE, AND SO ON, HAVE BUILT THROUGH AI WILL NEVER BE COMPARABLE TO LARGE QUANTITATIVE FUNDS。

"QUANTIFICATION STRATEGIES ARE ESSENTIALLY ABOUT KEEPING AHEAD OF THEIR MARKET COUNTERPARTS IN ORDER TO HAVE EXCESS RETURNS. IF YOU THINK YOUR NORMAL AI HAS BUILT A GOOD STRATEGY, IT MAY HAVE BEEN DISCOVERED AND REPEATED BY MOST INTELLIGENT PEOPLE." TWO DOGS SAY THAT THIS IS ALSO THE ADVANTAGE OF TOP-LEVEL QUANTITATIVE FUNDS。

DOES AI REPLACE THE GP

BUT THE TWO DOGS ARE NOT WORRIED THAT AI WILL REALLY TAKE OVER A CAREER LIKE GP OR ANALYST BECAUSE AI IS ALWAYS NEUTRAL AND ACCESSIBLE TO ALL, AND IT'S A POLE, AND THE GP CAN USE AI TO IMPROVE ITS OWN KNOWLEDGE SYSTEMS AND INVESTMENT STRATEGIES TO GENERATE MORE REVENUE FOR LPS. WHAT REALLY UPSETS TWO DOGS IS THAT AI INCREASED THE FRICTION BETWEEN THE GP AND THE LP。

“SOME OF THE LPS WOULD EVEN ASK YOU WHY THEY DIDN'T THROW THE HOT FLAGS AT THE MOMENT, AND THEY'RE STILL ANALYZING THE HEADLINES, AND THEY DON'T UNDERSTAND THAT THE GPS DON'T DO WHAT THEY'RE POPULAR AT THE MOMENT,” THE TWO DOGS WERE A LITTLE CONFUSED ABOUT THE PHENOMENON, ESPECIALLY AFTER THE US SHARES, THE AI, THE SEMICONDUCTOR, HAD BECOME WINDY SINCE THE BEGINNING OF THE YEAR, AND THE BULK BET ON THE MAINS OF THE RACEWAY。

IN CATTLE MARKETS, IT IS TRUE THAT THE RETURN ON THE INVESTMENT OF THE OCCUPANT CAN EASILY SURPASS THE FUND, EITHER BY MAKING PERSONAL INVESTMENTS MORE FLEXIBLE, MORE TOLERANT AND MORE FOCUSED, OR BY MAKING THEM MORE EFFICIENT, WITH AI’S COMPLEMENTARY RESEARCH, THAT THE RESEARCH OF THE OCCUPANT INVESTORS WILL INDEED BE SIGNIFICANTLY MORE EFFICIENT, AMOUNTING TO A 24-HOUR STANDBY EXPERT。

ESPECIALLY IN THIS YEAR'S U.S. STOCK MARKET, IF THERE'S A POPULAR STOCK HELD IN THE FAMILY PRESSURE, LIKE MOODY, MIZUEN, HERCULES, AND SO ON, THE RETURN ON INVESTMENT COULD EXCEED MOST OF THE FUNDSIn the city of Bulls, you often think you're an appetizer。

BUT ALL OF THIS IS BASED ON THE PREMISE THAT THE DIASPORA WILL USE AI CORRECTLYIf you use a bad AI, it'll be half the work, and the dog says it's the biggest friction with the LP. “These high net value populations in the country use mostly companion dialogue like bean buns, which is not widely available, such as ChatGPT, Claude, and so forth, and which is highly susceptible to machine hallucinations in the professional field in order to provide emotional value to users.”

IN ESSENCE, THE PROBLEM IS NOT THE LEVEL OF AI CAPACITY, BUT THE FACT THAT MOST PEOPLE DO NOT REALLY UNDERSTAND HOW TO USE AI. AI IS ABLE TO CONSOLIDATE MASS INFORMATION IN A FEW SECONDS AND CONSTRUCT A LOGICAL AND SELF-CONFORMING ANALYTICAL FRAMEWORK, BUT LOGICAL SELF-CONFORMITY DOES NOT MATCH REALITY. FOR LPS LACKING A PROFESSIONAL BACKGROUND, IT IS OFTEN DIFFICULT TO DISCERN WHICH CONCLUSIONS ARE BASED ON REAL DATA AND WHICH ARE ONLY PROBABILITIES EXTRAPOLATIONS OF MODEL GENERATION。

AS A RESULT, MOST INVESTORS ARE SEEKING TO IDENTIFY WITH AI, RATHER THAN SEEKING ANALYSIS FROM AI, WHOSE ULTIMATE OBJECTIVE IS NOT TO HELP INVESTORS “GO TO TRUTH”, BUT TO COMPLETE THE DIALOGUE。

SO, WILL AI REPLACE THE GP? AI CAN GENERATE 10,000 LOGICALLY ROUNDED RESEARCH REPORTS AT A LOW COST, BUT ASSET MANAGEMENT IS BASED ON AN “OLD SERVICE INDUSTRY” BASED ON TRUST AND INTELLIGENCE, AND A PROCESS OF MUTUAL SELECTION BETWEEN GP AND LP。

IT'S JUST THAT AT THE END OF THE DAY, EVERYTHING IS GOING TO BE DONE BY AI TO MAXIMIZE THE FUTURE OF RESULTS, AND IT'S TIME TO LEARN FROM AI AND LEARN MORE ABOUT EMOTIONAL VALUES。