[Daniel’s PoV]

Yesterday marked a significant milestone in my life as I celebrated my ninth birthday amidst the grandeur of the town hall. The event was orchestrated with meticulous detail by none other than Mayor Jess Orndorff himself, a testament to the esteem my father holds in the community. Adam, my father, now assumes the prestigious role of Managing Partner in his enterprise, which has undergone a transformation from its humble origins as 'Astor & Whitney Consultants' to its new iteration as 'Astor & Whitney Fund'.

Around seven years ago, my father ventured into the realm of consultancy, planting the seeds of prosperity in our quaint town. His visionary leadership and unwavering dedication soon bore fruit, propelling his enterprise to remarkable heights. By 1971, the influence of Astor & Whitney had extended beyond the confines of our town, reaching neighboring communities and cities across Maryland State. Along the journey, my father earned not only professional acclaim but also the heartfelt admiration of the elite echelons of society.

Therefore, in the preceding year of 1973, my father made a pivotal decision to transform his enterprise from a consultancy firm into an investment fund. Presented with a myriad of options in the realm of investment funds, he narrowed his focus to two distinct categories: Hedge Fund or Mutual Fund.

That evening, I joined my father at the table, and together, we delved into a thorough discussion regarding the merits and drawbacks of both hedge funds and mutual funds. Despite my tender age of eight, my father had come to recognize my aptitude for comprehending such complex concepts.

Let's delve into the intricacies of mutual funds. A mutual fund operates as a professionally managed investment pool, gathering funds from numerous investors to create a diversified portfolio. This portfolio may include a mix of stocks, bonds, money market instruments, or a blend of these assets, aiming to achieve optimal returns while managing risks.

To sustain operations, mutual funds levy fees and expenses, covering various costs such as investment management fees, administrative expenses, and other operational overheads. These fees are critical for the fund's sustained management and performance.

Mutual funds offer accessibility to a broad spectrum of investors, spanning individual investors, retirement accounts, institutional investors, and financial advisors. Investors typically access mutual funds through brokerage platforms, retirement accounts, or by direct investment through the fund company.

In contrast, a hedge fund operates as an investment pool, aggregating funds from accredited and institutional investors. These funds are then utilized to implement diverse strategies aimed at yielding favorable returns. Unlike conventional mutual funds, hedge funds enjoy greater flexibility in their investment methodologies and can deploy a broader spectrum of strategies, extending beyond conventional long-only investing approaches.

In hedge funds, investors are subject to both management and performance fees. The management fee constitutes a percentage of the assets under management (AUM), serving as compensation for the fund's ongoing management and operational costs. Additionally, a performance fee is levied, calculated as a percentage of the profits generated by the fund that exceed a predefined benchmark or hurdle rate. This incentivizes hedge fund managers to maximize returns for investors, aligning their interests with those of the fund's stakeholders. The performance fee structure encourages managers to achieve superior investment results, as they only receive compensation when the fund outperforms its established performance targets.

Hedge funds cater exclusively to accredited investors, who must satisfy specific income or net worth criteria stipulated by securities regulators. Accredited investors encompass high-net-worth individuals, institutional investors, and other sophisticated entities capable of assuming the risks inherent in hedge fund investments. This exclusivity ensures that hedge fund participants possess the financial sophistication and resources necessary to navigate the complexities of alternative investment strategies.

If my father had opted for a Hedge Fund, he would have risked alienating 90% of his original clients, predominantly middle-class individuals who wouldn't meet the criteria to qualify as accredited investors. However, he could have strategically targeted high-net-worth individuals capable of injecting substantial sums of money into the fund. While this shift may have resulted in the loss of some clientele, the significant investments from affluent investors would likely have compensated for any shortfall in client numbers.

Father ultimately chose to establish a mutual fund, prioritizing the trust and loyalty of his existing clients over the potential for greater profits. He opted for a mid-cap mutual fund, reflecting his commitment to maintaining a balanced and responsible approach to investment management.

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Mid-cap mutual funds specialize in investing in companies with medium-sized market capitalizations, typically ranging between the top 70% and 85% of the market by size. These companies are often experiencing rapid growth and expansion, presenting greater growth potential compared to larger counterparts. While mid-cap funds offer the prospect of higher returns over the long term, they also tend to exhibit higher volatility compared to large-cap funds.

Over the past year, he has attracted the backing of more than 2,000 investors, including notable figures such as the mayors of Annapolis and Brunswick, executives from B&O Railroad, a prominent railroad company in Maryland, as well as affluent retirees with substantial wealth.

In the past year, the fund amassed a total of $4.2 million, and achieved an impressive 12.3% return during the 1973-74 financial year despite a turbulent economic backdrop. While the Dow Jones Industrial Average recorded a -16.5% decline, indicating an impending recession, Father managed to generate profits for his clients. This remarkable performance has elevated his reputation within finance circles in Maryland and Virginia.

This year, the fund has attracted nearly 10,000 investors and has accumulated a staggering $24.5 million in funding. With the fund management fee set at 1% of assets under management (AUM), this amounts to approximately $245,000 in revenue for the year, regardless of whether any profits are generated.

Now, moving on from the corporation part and coming to myself and my personal growth. When I was seven years old, I finally reached level 10. Suddenly, a screen popped up, blocking my vision. It mentioned something about unlocking my skillset, and then disappeared on its own. Out of instinct, I muttered "skills," and another screen appeared. To my surprise, it listed all my skills, which turned out to be practically nonexistent. I couldn't believe that all my hard work had seemingly amounted to nothing.

But guess what? I was wrong. All I had to do was perform a task related to that skill, and it would unlock at an appropriate level. My first unlocked skill was 'Reading,' and it activated itself at level 53. It seemed to have accumulated what I had achieved in my previous life.

Currently my ‘skills’ screen is something like this:

Skils

Level

Reading

59

Running

37

Pitching

22

Hitting

19

Arithmetic

61

Economics

77

Manipulation

58

Analysis

48

Oration

36

Leadership

35

For obvious reasons, my 'economics' skill is the highest, as it should be since I have a master's degree in the field. Most of my other skills were unlocked at a certain level, but 'Pitching' and 'Hitting' were exceptions; I had to start from scratch with those. I practice baseball daily, and despite my age, I outperform my peers. That's why I've taken to practicing with middle schoolers.

Even though I'm still homeschooled, I've taken on the challenge of self-studying Grade 11 material. Initially, I thought it would be a breeze, given my previous academic achievements. However, I quickly realized that time has a way of making you forget things you haven't used in a while. Concepts that once seemed simple now require more effort to grasp, and I find myself dedicating extra time to review and reinforce my understanding. Despite the challenges, I'm determined to excel and continue pushing myself to reach new heights.

Wow, it's already 10 AM! Times flows when I’m talking to myself. Let's head over to dad's office today.

I make it a habit to drop by my father’s office at least once or twice a week. It not only allows me to become familiar with the employees there but also gives me insights into the technology and operations of this era.

As I lounged beneath the sprawling branches of a tree in our backyard, I realized the morning was slipping away. With a stretch, I left the peaceful shade and headed indoors. In a matter of minutes, I swapped my relaxed attire for a simple t-shirt and shorts, ensuring both comfort and practicality for the day ahead. After securing the house, I set off towards my father's office, eager for the familiar bustle of the workplace.

Nestled along the serene banks of the Potomac River, the office of 'Astor & Whitney Fund' commands a picturesque view of the tranquil waters that separate Maryland from the state of Virginia. This idyllic setting, far removed from the hustle and bustle of urban life, lends a sense of calm and serenity to our workplace. While it may not rival the frenetic energy of New York City, the activity here is palpable, bustling with the daily comings and goings of local residents and business professionals alike.