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Originally Posted by hedgefundguy
I would be interested in hearing from David or others on if they have a history of staking poker players and what has been their p/l history on doing so.
I was one of the most active online cash game stakers pre-Black Friday (2009-2011). Staking deals at higher stakes (25/50+) are usually one-time deals where a percentage of action is sold at par since the games do not run reliably enough. However there are a good number players looking for a longer term deal (sample size is your friend), the ideal players being overly conservative and looking to mitigate bankroll risk when moving up in stakes rather than Kelly violators.
To me, the main commonality between picking players and HFs to invest in is that it is not a level playing field in terms of access. The best players and funds have their pick of investors and can set the terms.
Back then anyone could recognize a profitable poker player (although this is changing, online results are not as transparent now) so your key to returns as a staker was a differentiated offer, ideally without sacrificing on the profit split. In my case, an offer of coaching was included.
Without transparency or access to historical data, things get a bit more complicated and you need to depend on personal experience (playing in same games) or third party referrals which obviously decrease your degrees of certainty in your projections.
No questions at the moment, but enjoying the thread and the discussion.