IQ-G creates a joint venture with the fund manager. This joint venture owns exclusive rights to all trading strategies. Once the strategy is funded — and for as long as the funding is maintained — both sides are obligated to remain in the partnership. The agreement is firmly conditioned on IQ-G continuing to meet its capital milestones. The manager maintains complete control over trading directives; IQ-G will not pressure managers to modify or alter their strategy.
Generally, third party trading servicers and arrangements must conform to standards of our preferred vendors.
Our Due Diligence process will typically start off with an initial request for a thorough overview of the manager’s trading strategy, its operational parameters, and performance history. This process will involve an initial discussion, with follow-up questions and requests for documentation and information.
If IQ-G determines that the strategy may be of interest, it will provide the manager with a joint venture agreement for review. In some cases, IQ-G may choose, for an interim period of time, to monitor performance through regular progress reports, and may request specific metrics on a recurring basis.
After the agreement has been executed, we will conduct a round of discussions and meetings with our IPPs.
Dual-track discussions will take place with these IPP groups. The manager will be asked to help familiarize the group with the methodology and operational dynamics.
In the event that IQ-G and its IPPs choose to move forward with the strategy, final documentation for the investment are drawn up and executed, and the final draft of the joint venture vehicle, as well as any necessary operational support systems, budgets and service agreements are mutually agreed upon.