Mark T Willis

US Patent:

7966238, Jun 21, 2011

Filed:

Sep 23, 2009

Appl. No.:

12/565502

Inventors:

Henry Bregstein - Tenafly NJ, US
Renatus R. Van Kesteren - New York NY, US
Mark Willis - Staten Island NY, US

Assignee:

Bank of America Corporation - Charlotte NC

International Classification:

G06Q 40/00

US Classification:

705 35

Abstract:

An investment structure for multiple classes of investors that combines the advantages of both the master feeder structure and the reverse master feeder structure with segregated accounts. In particular, an investment structure is formed in which investors invest in a common fund. The common fund, in turn, opens a common prime brokerage account, having at least three sub-accounts, for example: an unlevered account; one or more levered accounts and a general trading account. The prime broker provides class loans to the levered account and margin loans to the general trading account. To the extent class loans are provided to the levered account, levered investors will participate in the returns on the general account as if the levered investors invested capital plus the amount of any class loans to that levered account. The unlevered investors will participate in the returns on the general trading account on the basis of their capital contributions alone. The prime broker will have no recourse against any assets of any account other than the levered account as a result of a default or margin call of the levered account.

US Patent:

20070299786, Dec 27, 2007

Filed:

Jun 26, 2006

Appl. No.:

11/474579

Inventors:

Henry Bregstein - Tenafly NJ, US
Renatus Rolandus Adrianus Paulus Van Kesteren - New York NY, US
Mark Willis - Staten Island NY, US

International Classification:

G06Q 40/00

US Classification:

705 36 R

Abstract:

An investment structure for multiple classes of investors that combines the advantages of both the master feeder structure and the reverse master feeder structure with segregated accounts. In particular, an investment structure is formed in which investors invest in a common fund. The common fund, in turn, opens a common prime brokerage account, having at least three sub-accounts, for example: an unlevered account; one or more levered accounts and a general trading account. The prime broker provides class loans to the levered account and margin loans to the general trading account. To the extent class loans are provided to the levered account, levered investors will participate in the returns on the general account as if the levered investors invested capital plus the amount of any class loans to that levered account. The unlevered investors will participate in the returns on the general trading account on the basis of their capital contributions alone. The prime broker will have no recourse against any assets of any account other than the levered account as a result of a default or margin call of the levered account. In an alternative embodiment of the invention, the investment structure is structured as a fund of funds, in which multiple classes of investors invest, which, in turn, invests in multiple investment funds, or a fund that employs alternative investment strategies that overlay the basic trading strategies. In this embodiment, a credit facility is established with the equivalent of three sub-accounts as discussed above.