Title: Stoneridge P2P mutual fund (LENDX)
Post by: Fred93 on September 05, 2016, 11:00:00 PM
Post by: Fred93 on September 05, 2016, 11:00:00 PM
In June, Stoneridge revealed a US mutual fund which invests in P2P loans. Symbol LENDX.
They've announced that this fund "may" invest "more than 25%" of its funds in Lendingclub, Prosper, or FundingCircle individually. Makes sense, as these are the three major players.
So... This isn't so terribly exotic. Its the kind of thing most of us here do.
Prospectus can be found at ...
http://stoneridgefunds.com/documents/LENDX_prospectus.pdf?v=009
It would appear that this fund is intended to be marketed to institutional customers. There are giveaways like the $15M minimum investment, although it would appear that "clients of institutional customers" will have a lower unspecified limit.
But... These institutional customers would have to be stupid institutional customers, because the fees on this fund are laughable.
3.74% per year for what is most likely an automated index-like fund of loans from the three major originators. How hard is that? Do you think that is worth 3.74% per year of fees? Gosh, I don't think so.
They've announced that this fund "may" invest "more than 25%" of its funds in Lendingclub, Prosper, or FundingCircle individually. Makes sense, as these are the three major players.
So... This isn't so terribly exotic. Its the kind of thing most of us here do.
Prospectus can be found at ...
http://stoneridgefunds.com/documents/LENDX_prospectus.pdf?v=009
It would appear that this fund is intended to be marketed to institutional customers. There are giveaways like the $15M minimum investment, although it would appear that "clients of institutional customers" will have a lower unspecified limit.
But... These institutional customers would have to be stupid institutional customers, because the fees on this fund are laughable.
3.74% per year for what is most likely an automated index-like fund of loans from the three major originators. How hard is that? Do you think that is worth 3.74% per year of fees? Gosh, I don't think so.
Title: Stoneridge P2P mutual fund (LENDX)
Post by: PhilGD on September 05, 2016, 11:00:00 PM
Post by: PhilGD on September 05, 2016, 11:00:00 PM
I don't understand why this fund has loan servicing fees. Isn't the servicing done by the platforms even for whole loan buyers?
Title: Stoneridge P2P mutual fund (LENDX)
Post by: TravelingPennies on September 05, 2016, 11:00:00 PM
Post by: TravelingPennies on September 05, 2016, 11:00:00 PM
Title: Stoneridge P2P mutual fund (LENDX)
Post by: AnilG on September 05, 2016, 11:00:00 PM
Post by: AnilG on September 05, 2016, 11:00:00 PM
Doesn't seem like mutual fund, more like hedge fund. Unlisted Closed end interval fund with restricted redemption.
Title: Stoneridge P2P mutual fund (LENDX)
Post by: TravelingPennies on September 06, 2016, 11:00:00 PM
Post by: TravelingPennies on September 06, 2016, 11:00:00 PM
Title: Stoneridge P2P mutual fund (LENDX)
Post by: TravelingPennies on September 06, 2016, 11:00:00 PM
Post by: TravelingPennies on September 06, 2016, 11:00:00 PM
My bad. Prospectus made it sound like unlisted closed end interval fund. I didn't look in detail how they are going to report their holdings, hiding loans behind SPVs like UK funds or more transparent with loan profiles. Considering all such UK funds despite holding 2/3rd of US MPL loans are trading at discount, I will wait to see what happens to US funds.
from: Fred93 on September 07, 2016, 01:19:34 AM
from: Fred93 on September 07, 2016, 01:19:34 AM
Title: Stoneridge P2P mutual fund (LENDX)
Post by: ryancar6 on September 06, 2016, 11:00:00 PM
Post by: ryancar6 on September 06, 2016, 11:00:00 PM
So unless this is over my head, why would they choose to use this with such high fee's? Are there other options out there?
Title: Stoneridge P2P mutual fund (LENDX)
Post by: rawraw on September 07, 2016, 11:00:00 PM
Post by: rawraw on September 07, 2016, 11:00:00 PM
Perhaps they justify the fee with the use of leverage and access to certain credit markets that aren't as easy to access (like the syndicated market, perhaps?)
Title: Stoneridge P2P mutual fund (LENDX)
Post by: dompazz on September 13, 2016, 11:00:00 PM
Post by: dompazz on September 13, 2016, 11:00:00 PM
Just curious, how much would you be willing to pay in fees for an unlevered fund? Assume it is a traded fund so you could get in and out at will? What about a levered fund?
Title: Stoneridge P2P mutual fund (LENDX)
Post by: TravelingPennies on September 13, 2016, 11:00:00 PM
Post by: TravelingPennies on September 13, 2016, 11:00:00 PM
Title: Stoneridge P2P mutual fund (LENDX)
Post by: TravelingPennies on September 13, 2016, 11:00:00 PM
Post by: TravelingPennies on September 13, 2016, 11:00:00 PM
Title: Stoneridge P2P mutual fund (LENDX)
Post by: TravelingPennies on September 14, 2016, 11:00:00 PM
Post by: TravelingPennies on September 14, 2016, 11:00:00 PM
Title: Stoneridge P2P mutual fund (LENDX)
Post by: TravelingPennies on September 14, 2016, 11:00:00 PM
Post by: TravelingPennies on September 14, 2016, 11:00:00 PM
Think about a closed end muni-bond fund. Those underlying bonds don't trade much. You can get in and out of those at anytime during trading. Yeah, they rarely trade at NAV. So what?
If you are a small investor and you want exposure to muni's they are one of the only ways to get that exposure. Why couldn't someone do that for p2p loans?
If you are a small investor and you want exposure to muni's they are one of the only ways to get that exposure. Why couldn't someone do that for p2p loans?
Title: Stoneridge P2P mutual fund (LENDX)
Post by: Theta on September 28, 2016, 11:00:00 PM
Post by: Theta on September 28, 2016, 11:00:00 PM