Multi-level leverage account structure

Data processing: financial – business practice – management – or co – Automated electrical financial or business practice or... – Finance

Reexamination Certificate

Rate now

  [ 0.00 ] – not rated yet Voters 0   Comments 0

Details

Reexamination Certificate

active

07966238

ABSTRACT:
An investment structure for multiple classes of investors that combines the advantages of both the master feeder structure and the reverse master feeder structure with segregated accounts. In particular, an investment structure is formed in which investors invest in a common fund. The common fund, in turn, opens a common prime brokerage account, having at least three sub-accounts, for example: an unlevered account; one or more levered accounts and a general trading account. The prime broker provides class loans to the levered account and margin loans to the general trading account. To the extent class loans are provided to the levered account, levered investors will participate in the returns on the general account as if the levered investors invested capital plus the amount of any class loans to that levered account. The unlevered investors will participate in the returns on the general trading account on the basis of their capital contributions alone. The prime broker will have no recourse against any assets of any account other than the levered account as a result of a default or margin call of the levered account. In an alternative embodiment of the invention, the investment structure is structured as a fund of funds, in which multiple classes of investors invest, which, in turn, invests in multiple investment funds, or a fund that employs alternative investment strategies that overlay the basic trading strategies. In this embodiment, a credit facility is established with the equivalent of three sub-accounts as discussed above.

REFERENCES:
patent: 4910676 (1990-03-01), Alldredge
patent: 5812987 (1998-09-01), Luskin et al.
patent: 5983206 (1999-11-01), Oppenheimer
patent: 6021943 (2000-02-01), Chastain
patent: 6108641 (2000-08-01), Kenna et al.
patent: 7089205 (2006-08-01), Abernethy
patent: 7133840 (2006-11-01), Kenna et al.
patent: 7349881 (2008-03-01), Lockwood
patent: 7574403 (2009-08-01), Webb et al.
patent: 7657478 (2010-02-01), De Diego Arozamena et al.
patent: 2004/0054613 (2004-03-01), Dokken
patent: 2004/0107157 (2004-06-01), Bleunven et al.
patent: 2004/0243498 (2004-12-01), Duke
patent: 2006/0015426 (2006-01-01), Freund
patent: 2006/0059074 (2006-03-01), Freund
patent: 2006/0064378 (2006-03-01), Clementz et al.
patent: 2006/0080148 (2006-04-01), Koresko
patent: 2006/0224494 (2006-10-01), Pinkava
patent: 2006/0235785 (2006-10-01), Chait et al.
patent: 2006/0242041 (2006-10-01), Canney
patent: 2006/0271453 (2006-11-01), Landle et al.
patent: 2006/0277124 (2006-12-01), Gerrietts, II
patent: 2007/0040015 (2007-02-01), Carlson et al.
patent: 2007/0118449 (2007-05-01), De La Motte
patent: 2007/0136180 (2007-06-01), Salomon et al.
patent: 2007/0150413 (2007-06-01), Morgenstern
patent: 2008/0065532 (2008-03-01), De La Motte
patent: 2008/0097884 (2008-04-01), Ferris
Buscema, John; Master-Feeder Funds: Structuring for Maximum Efficiency; May 11, 2006.
Anonymous; Journal of Accountancy; vol. 197, No. 3, pp. 86-95; Mar. 2004.
Anonymous; Internal Revenue Bulletin; No. 2002-1, pp. 117-126; Jan. 7, 2002.
Burton, Hughlene; Tax Adviser; vol. 33, No. 2, pp. 108-116; Feb. 2002.
Al Hudec, et al.;Offshore Hedge Funds; Davis & Company; VanSOL:647358.1; 22 pages.
BankersOnline.com;Regulation T; 1 page.
Green Trader Law;Hedge Funds; Funds Types&Offerings: Master Feed Funds; 1 page.
Investopedia.com;Margin Call; 1 page.
Wikipedia;Margin(finance); 5 pages.
Coudert Brothers LLP;Organization of Off-Shore Investment Funds; 11 pages, Feb. 15, 1999.
Nandita Das, et al.;An Overview of the Hedge Fund Industry; 33 pages, 2002.
HedgeFund.Net;Hedge Fund Primer; New to Hedge Funds?; 2 pages, Retrieved May 11, 2006.
Jonathan P. Blum;Bank Credit and Hedge Funds; 4 pages, Retrieved May 11, 2006.
John Buscema;Master-Feeder Funds: Structuring for Maximum Efficiency; 4 pages, Retrieved May 11, 2006.
Hannah M. Terhue;Hedge Funds; Partnership Tax Issues of Offshore Hedge Funds; 4 pages, Retrieved May 11, 2006.
www.HFAlert.com;Hedge Fund Alert; 15 pages, Retrieved May 11, 2006.
Hedge Fund World.com;Description of a Hedge Fund; 9 pages, Retrieved May 11, 2006.
USPTO; Office Actionfor U.S. Appl. No. 11/474,579, filed Jun. 26, 2006 in the name of Henry Bregstein; 21 pages, Apr. 22, 2008.
International Search Reportfor International Application No. PCT/US07/72108; 1 page, Jul. 30, 2008.
USPTO; Office Actionfor U.S. Appl. No. 11/474,579, filed Jun. 26, 2006 in the name of Henry Bregstein; 24 pages, Mar. 24, 2009.

LandOfFree

Say what you really think

Search LandOfFree.com for the USA inventors and patents. Rate them and share your experience with other people.

Rating

Multi-level leverage account structure does not yet have a rating. At this time, there are no reviews or comments for this patent.

If you have personal experience with Multi-level leverage account structure, we encourage you to share that experience with our LandOfFree.com community. Your opinion is very important and Multi-level leverage account structure will most certainly appreciate the feedback.

Rate now

     

Profile ID: LFUS-PAI-O-2724725

  Search
All data on this website is collected from public sources. Our data reflects the most accurate information available at the time of publication.