Your Questions About Hedge Funds That Invest In Movies

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Richard asks…

Is there a firm which makes it possible for smaller investors to invest in KPCB funds?

Are there any firms which aggregate capital from smaller investors and then reinvests into KPCB funds as a Limited Partner?

Justin answers:

The simple answer to your question is “No.” You’re referring to a venture capital fund whose investors are not likely to be disclosed publicly. Ordinarily, this is going to be the investment target of choice for hedge funds.

Venture capitalists look for situations bearing unusual risk, often times. Amounts of money they might invest may appear to be staggering from the retail perspective. I’ve been in on many such meetings with hundreds of thousands up to millions of dollars bandied about like so much popcorn at your local movie theater. Investment bankers are part of the venture capital fabric.

KPCB is closed to the public, thus making retail participation not possible.

Len

Charles asks…

How to capitalize on the stock market during a terrorist attack?

Ok. So I was watching Taking Pelham 1,2,3 and part of the plot during the movie was the criminal staging a terrorist attack to make money on the stock market. Now i researched some and found out that terrorist attacks do drop the market for whatever reason. So how does one know which stock to invest in that‘s going to soar (i.e. in the movie it was gold that went up tremendously).

Justin answers:

You short sell the market index such as the S&P 500 massively. You will be too late probably though. Most individual investors can not short the indexes on time because the big boys; hedge funds and financial institutions with their billions, would be using most if not all of the shorting shares available from the whole United States. You trade maybe in hundreds or thousands…they trade in billions…so do the math. Also, brokers are bias towards reserving shorting shares to them…nothing you can do about this.

Gold goes up when the markets are down. Scared investors dump their shares in the market and flee to buy gold…that is how it is always been.

You ask which stocks will go down? All stocks mostly…but for you to be certain you would have to short the market indexes.

I hope this helps.

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