Q & A

To Become A Portfolio Manager

For Portfolio managers

Vanilla Equity

Welcome to the gateway for aspiring portfolio managers. Should you have any questions that are not answered in the Q & A below, you can reach us on relevant social media sites. @VanillaEquity

Vanilla Equity is a gateway for aspiring portfolio managers. You get access to manage a U.S. stock portfolio of $50 000 and get a fair 50/50 profit split.

The name “Vanilla Equity” refers to the plain vanilla stock selection that is offered. No fancy derivatives, leveraged FX’s or borrowed assets.

No. Vanilla Equity is a store front for Luxembourg based investment company Snaell Capital. Snaell Capital outsources the management of part of its assets to external parties. Vanilla Equity encourages smaller portfolio managers to incorporate and to become that external party.

Currently we do not offer any courses.

But we will continuously provide free portfolio management related resources, including educational material, on our website and on relevant social media sites.

You can follow our weekly portfolio simulation here.

In order for you to start managing a portfolio, you need to become a member. In order to become a member, you need to be incorporated.

Your corporation applies for a membership. We have a video conference and we sign an agreement.  You pay the membership fee and we set you up on Interactive Brokers as an authorized trader for a dedicated sub-account of Snaell Capital.

Yes. We apply plain vanilla solutions and try to keep everything as simple as possible.

The investment universe is restricted to US equities listed on the main exchanges. Trade as often as you see fit (there is however a cap of 30 trades per day). You are allowed to not be fully invested. There are no restrictions on holding positions over the weekend or trading during macroeconomic releases.

 

Yes. Currently we only contract registered companies. Hiring individual portfolio managers as employees, consultants or as work-for-hire might be possible in the future. We will continue to encourage individuals to create their own enterprises, either alone or by partnering up with others, as it often opens new doors for the individual.

Please see this article.

Your company will be paid quarterly based on the portfolio performance. The payment is issued within ten business days from the end of month (March, June, September and December) to the IBAN number you have provided in your invoice.

The account is live and it is real money. All equity trades are executed on the market through Interactive Brokers.

Individuals who have had great results buying and selling equities but have portfolios worth less than $20 000.

With Vanilla Equity you can build a track record for future reference (for example when applying for a portfolio management position as an employee, or for attracting investors to your own hedge fund.)

No. But we do have two requirements to ensure that we don’t entrust just anyone to manage a stock portfolio. Firstly, you need to be resourceful enough to get incorporated. Secondly, the corporation has to pay an initial membership fee.

If you have trouble with the points above, you will likely not be a suitable candidate.

If you are an employable, qualified and experienced portfolio manager with a good track record, you can find employment. Vanilla Equity’s mission is to help those who are not yet there, and that perhaps would like to become independent asset managers.

We believe the performance of a portfolio manager should be measured over a longer period of time. Frequent performance measuring may pressure portfolio managers to unnecessarily deviate  from their trading strategy during temporary market fluctuations.

Part-time investors or mature retail traders with small portfolios but solid track records tend to be the best fit.

If your current stock portfolio yields more than 2% every quarter, then your trading strategy will work also with Vanilla Equity.

 

Ready to become a portfolio manager?

Sign up to our newsletter and follow us on relevant social media sites. When you are confident in your trading strategy, you can apply for a membership at Vanilla Equity.

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