"I assume that they already have had their private placement of initial capital - hence how could they have started trading already. The initial capital is a small amount - maybe a million or so. This is only so SWARM can prove it's track record before going to the Expo to seek large public money - money that will go into a fund vs being privately placed as ownership in the company.
I guess we should all expect to see a PR about the performance of SWARM before the expo. If that's true and the results are still hitting over 90%, new money will be running towards SPZI.
So that might mean my speculation of .04 by 11/1 and .08 by 12/1 and then .25 by 1/1/08 could still be inline. Now that's just a WAG on my part but is it really so crazy to see the PPS hit those targets?
You seem to assume that SPZI will receive 7 % of the net profits of the hedge fund rather than 7 % of the net profits of 141 Capital. Is that assumption warranted?