How do you calculate returns per individual investor and value of fund?

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Timothy H asked:


If you create a fund through a LLP or S-Corporation, how do you calculate returns per individual investor and value of fund? For example: 5 people each invest $2000 each on January 1st. Each individual investor cannot take out initial investment until 6 months after deposit. September 1st, value of fund = $11,000. Investor A wants to take out total initial investment plus gains. How do you maintain the value of the fund with that loss?

CLAY
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This entry was posted on Thursday, January 29th, 2009 at 11:34 pm and is filed under Investment. You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.

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One Response to “How do you calculate returns per individual investor and value of fund?”

  1. GILBERTO Says:
    February 1st, 2009 at 5:11 pm

    CHAD

    lets say shares cost $1000 each, meaning the NAV (net asset value) of each share is $1000

    so when each investor paid $2000 they each got 2 shares.

    On september 1st the value of the fund is $11,000 or $1,100 per share. Investor A takes out his money, he sells his shares to someone else for $1,100 per share or perhaps somehow he can just take out his $2,200. Then what would remain is a fund worth $9,800, with 8 shares, each worth $1,100.