We're Closing Arch Capital

Don't worry, the podcast isn't going anywhere...

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We have a unique episode for our Tuesday slot this week. Typically, at the end of the month, we record an “Arch Capital Episode” that covers a stock we own, are interested in, or passed on for our investment fund. If you were unaware, we started a small investment fund a few years back.

Well, deciding what to do this week was awkward because we just decided to close the fund and return money to investors. Here’s a copy of the closing letter, for those interested (link).

In this special Tuesday episode, Ryan and I perform a post-mortem on running the fund. I think it came out as an interesting episode, but it was definitely bittersweet knowing the venture was unsuccessful.

Nothing with the podcast is changing. In fact, I think this will allow us to pour more time and effort into building the show.

Here are some questions we asked each other to spark conversation:

• Why did we start it?

• What did it take to get the fund up and running?

• What was our fee structure and why did we choose it?

• Was this the right strategy?

• What was the market environment like when we started it?

• What were our holdings like at the start? How did we do?

• Why are we closing it? How much did it cost to run on an annual basis?

• What did we underestimate about running the fund?

• Best Investment/Worst Investment?

• What were some of the biggest investment mistakes we made? What were the biggest investment wins we had?

• Would we do it again? What would we change?

We learned a lot starting up a fund. However, given the cash drain and our poor performance, it was the best move to end things.

Regular programming starts again next week with our sin stock theme! We are hitting British American Tobacco, MGM Resorts, Smith & Wesson, Diageo, and Altria Group (subject to change). Thank you for the continued support of Chit Chat Money.