To: [A bunch of hedge funds]
Subject: Arbitrage Investment
Greetings: I am professional sports arbitrageur. I am investigating the formation of my own offshore hedge fund that would fund my arbitrage activities, and I thought I would concurrently contact exisiting hedge funds to see if they would be interested in investing in this fantastic, risk free concept, saving me the time, effort and expense of establishing my own fund.
I am engaged in the practice of sports arbitrage, that is, simulataneous wagering on both sides of a sporting event when a market inefficency occurs and the two seperate bookmakers set the wager lines such that a guranteed profit can be made by this simultaneous wager. The outcome of the match is irrelevant, as the profit is made because the books set the odds differently. There is nothing illegal about it (in every country in the world, except the USA; therefore, the fund and it’s operation would be domiciled offshore) – it’s a perfectly legitimate way to take advantage of the high number of sports bookmakers in the world while making a guaranteed profit. I have designed a proprietary system for instant review of over 100 online bookmakers and recognition of any and all arbitrage opportunities; these opportunities usually exist for only a few minutes, so immediate recognition and action on the arbitrage is required.
I would envision the fund having a cap of probably $1-2 million US. Any more than that and I would start running into problems making sure the bookmakers would accept my wagers. This money would be spread across at least 50 bookmakers. I should have no trouble returning at least 4% per month (48% per year) to my investors with no real risk, after my fees and expenses. I would hope to be able to get closer to returning 6% per month (72% per year), but the compelling thing to remember is – there is no risk. No money is wagered/invested, until the existence of an arbitrage opportunity occurs, rendering the outcome of the sporting event irrelevant.
I am not aware of what specific criteria your fund has, but from what I can tell, a $1-2 million investment in a concept like this that has no risk and returns nearly 50% per year would be a wise investment. Please let me know if you would like to discuss this further. Email or call anytime.
Conversely, if you are not interested, would you mind telling me why not? Is it too small of an investment for your fund? Does this concept not seem believeable to you? Any input would be helpful?