I thought that you guys would find this interesting. A good friend of mine is the owner and operator of a gambling fund that is run out of Las Vegas, similar to a way a mutual fund would work. This is how he does it. A investment of $2500=1/2 unit, $5000=1 unit and so on, with $2500 equaling a half unit. One can invest as much as they want. A unit bet is $100. If one were to invest $10,000, you would purchase 2 units in the fund, and would be betting $200 a game. The fund has 4 primary handicappers. 1 for baseball, 1 for college and NFL football, 1 for NCAA basketball and NBA basketball, and 1 for hockey. The fund's year is comprised of 4 quarters. Every 3 months, you would revieve a check with the money earned from betting the games that the fund bet with the money that you had invested. The fund would never bet too many games. Usually 1-3 games a day in baseball and basketball, and maybe a total of 7-10 games on a football weekend. Not every day a bet was placed. Only smart bets were palced, never "action bets". The fund would make their money by charging a 20% management fee per quarter. Whatever your winnings were for the quarter, the fund would take 20% out for their service. If you had won $1000 for the quarter, you were sent a check for $800. The fund has had only one losing quarter in the 11 years that it has been in operation. The fund combined hits at 56-62% on average. All bets are for 1 unit always. Never more, never less. The fund would usually make a 60-70% return on your money per year, with a couple years getting more than 100% return on the money that you had invested. Now tell me what mutual fund does that?
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