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 and other liquid financial products.
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 returns in the “High Teens”. 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.
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.
KC aims at returning 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 investors to recuperate their initial investment before year 10 (if targets are met). In addition, investors own a stock option worth 10% of KC’s cash value callable in year 10.
PERFORMANCE & Stats
The compelling returns over time (see the Annex for illustrative purposes) are achieved by leveraging the AUM and critically by scaling up the number of Traders rather than requiring ever higher targets per Trader. KC’s Net Trading Result is retained within the company and increases 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.
Investors are allocated 50% of KC’s performance up to a Fixed Cap (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). These targets are not aggressive and definitely attainable.
The Annex lays out the hiring schedule for additional Traders each year. Hired Traders join on a commission based only contract (40% 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 terms of diversifying risk 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 (40% 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.