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Overview
Overview
Purpose
Purpose
The goal of the Teal & Tangent Income Fund is to pool family capital into a single professionally managed account that trades short-term, risk-managed options income strategies — such as iron butterflies, condors, covered calls, and cash-secured puts.
The fund’s purpose is to generate steady, risk-adjusted returns through premium income while protecting principal and aligning everyone’s incentives. I only earn a performance share when the fund realizes an actual gain
How Would This Work?
How Would This Work?
From My Perspective (Manager’s View)
From My Perspective (Manager’s View)
Structure
I’ll form a Texas LLC called Teal & Tangent Income Fund LLC.
The LLC will open a dedicated business brokerage account at a major custodian (e.g., E*TRADE or Interactive Brokers).
All investors, including me, will be members of the LLC, owning a percentage proportional to their capital contribution.
My Role
As Managing Member, I will execute all trades, manage risk, and maintain transparency.
I will not charge a management fee.
Instead, I’ll earn a 20% performance allocation based only on realized trading profits (not on paper or unrealized gains).
If the fund doesn’t make money in a given period, I receive no payout.
All members, including me, share equally in the remaining 80% of realized profits based on ownership percentages.
Operations
Trading and cash are held entirely within the LLC’s brokerage account — no personal commingling.
I’ll provide monthly or quarterly updates showing:
Fund value and composition
Ownership percentages
Realized profits and open positions
Withdrawals can be made quarterly with advance notice, depending on open trades.
From Your Perspective (Investor’s View)
From Your Perspective (Investor’s View)
Investment Mechanics
You’ll transfer your contribution (e.g., $50K–$100K) directly to the fund’s brokerage account, not to my personal account.
You’ll receive membership units representing your share of ownership in the LLC.
Your capital is invested collectively and is subject to normal market risks — there are no guarantees of return or principal protection.
Profit Allocation
At the end of each quarter or year, total realized profits are calculated.
From those profits:
20% is paid to me as the performance allocation.
The remaining 80% is distributed proportionally among all members (including me).
Unrealized appreciation (e.g., held shares that have risen in value) does not count toward the performance allocation until those positions are sold or closed.
Withdrawals
You can request a withdrawal at the end of any quarter with ~30 days’ notice.
Withdrawals reflect your proportional ownership at that time.
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