Tracking account structure to support different leverage levels within an investment fund

摘要

A method of supporting at least two different investor groups with different maximum leverage ratios in one investment fund is disclosed. Each different investor group may have an associated tracking account. According to various embodiments, the method includes establishing contractual arrangements between investors of the investor groups, the investment fund and an external lender. The contractual arrangements limit the recourse of the external lender to assets allocable to the investors of an investor group if the tracking account associated with such investor group triggers a margin call on a loan from the external lender. Alternatively, the contractual arrangements may limit the recourse of the external lender to assets allocable to the investors of an investor group if the trading account triggers a margin call to the extent that such call is allocable to such investor group. Loan proceeds from the external lender and contributions from each investor of the find are invested through a trading account associated with the investment fund. The method also includes calculating an allocation percentage of a trading account of the investment fund for each investor group to account for profits and losses of the trading account over the trading cycle based on the leverage ratio of each investor group.