Introducing KOSMO CAPITAL GM Ltd
Kosmo Capital GM Ltd is a registered Company in England and Wales and is a Principal Trading Firm with the mission of generating high returns on capital by trading a myriad of products including but not limited to FX, Fixed Income, Commodities, Indices, Stocks, Futures, Digital Assets, Cryptos and other liquid financial products.
A unique feature of KC is its overlapping with the new Decentralized Finance Eco-System. Via Digital Tokens and Atl-Coin KC gains exposure to Block Chain Technology and the ever developing possibilities that the Digital Finance Products can deliver. KC will issue two sets of Digital Tokens: one that represents its NAV and one that is a Digital coin with an annual yield and 50% of its nominal value backed by Gold Reserves held by KC (see Block-Chain for more details)
Shareholders-Investors in KC are only HNWI, UHNWI and professional investors highly competent in financial products and the risks associated with leveraged trading.
Kosmo Capital GM is not a listed company, is not a Hedge Fund, does not solicit retail funds or manage external capital and will only trade its own capital.
The model we are implementing targets high returns (double digits). The high compounded return in the medium term combined with the liquid nature of the underlying products configure KC as a hybrid structure with the characteristics of a Macro Hedge fund and a Private equity vehicle.
We want to offer a low capital-intensive alternative investment vehicle highly flexible in products and opportunities to pursue.
Capital at risk and market exposure are structurally contained (within the context of leveraged trading) and the trading is exclusively focused on liquid and deep markets which allow for efficient capital deployment.
We have a business model which is based on scaling up the number of traders as AUM grow organically.
Individual profit targets are designed to be achievable, reliable, and repeatable freeing us from depending on any single individual performance.
The high number of traders and trading strategies favour risk diversification/decentralization and portfolio effect optimization.
Shareholders-Investors holdings, from the end of year 1, are represented by Share-C which are planned to be converted into Smart Contracts embedded in Digital Tokens exchanged on the related Platform (ALT-Kosmo). Investors also gain exposure to a second Digital Token (Kosmo-Koin) which pays a dividend linked to KC’s performance (see Block-Chain).
KC aims at returning Shareholders-Investor’s initial invested capital in a scheduled manner as soon as the AUM cross the established thresholds as formalised in the business plan. This will allow Shareholders-Investors to recuperate their initial investment before year 10 (if targets are met).
One of our key assets is the wealth of experience we have built over 3 decades in the financial markets where we have gained a solid reputation for producing high returns and managing highly profitable businesses. Critically, it is that background that gives us access to a pool of like-minded talented traders that we can tap into to facilitate our growth ambitions.
Our vision for KC’s business is one of medium to long term commitment where the company follows a detailed growth path characterized by clearly defined trading targets and a meticulously laid-out cost structure.
Risk management culture and tools drive our commitment to discipline, accountability, and alignment to core values.
KC has a Zero Fee Policy.
PERFORMANCE & Stats
The compelling Trading Returns over time are achieved by leveraging the AUM and critically by scaling up the number of Traders rather than requiring ever higher targets per Trader (see the Annex for illustrative purposes). KC’s Net Trading Result is retained within the company and systematically reinvested in AUM.
Budget Results factor in a series of conservative and prudent assumptions that allow for a greater level of latitude in reaching targets: P/L targets are assumed to be under-performed by 20% and the number of traders that are expected to hit their Stop Loss each year is 20% of the total.
Shareholders-Investors (Share-C) are allocated 50% of KC’s net performance (see Annex).
Daily ROC target will be between 0.5% and 1% of AUM. The Margin posted for trading will be on average around 5% of AUM on a daily basis which is then sub-allocated to each trader.
Profit Targets start from 500 GBP per day and gradually reach 2,500 GBP daily as AUM grow (see Annex). In terms of proprietary trading standards these targets are not aggressive and therefore statistically have a high probability to be achieved.
The Annex lays out the hiring schedule for additional Traders each year. Hired Traders join on a commission based only contract (50% of P/L after Operating Costs plus potential discretionary Bonuses decided by the FMs). Hired Traders are managed by the Fund Managers. The above-mentioned hiring program is extremely important in order to achieve optimal risk diversification and meeting return goals in a systematic way.
The cost structure is laid out in the Annex.
FUND MANAGERS & HIRED TRADERS
Fund Managers and Hired Traders trade FX, FI, Commodities, Indices, Equities, Futures and other liquid linear and non-linear financial products.
FMs waive their Salary in Yr1 and Yr2 and collect a percentage of their salary as a function of KC’s Net Result up to 100,000 GBP annually (see Annex).
FMs can be awarded a Bonus which will be added to their salary if the total EoY performance of KC is above the budget line (see Annex).
Hired Traders join on a performance-based remuneration (50% of Profit after Operating Costs) under a contract for services.
Hired Traders can receive a bonus on top of their performance commission when they exceed targets. These Bonuses are at the sole discretion of KC’s executives.