The Ruthless Punters Club - Establishment Of The Kuen Cheng Speculative Fund

Venue: Casa Vino Cellar, The Curve

Date and Time: 13th April 2006, 9:30pm, most were late!

The Punters: As per the photo, with the guy in red-T the most good looking

Those who were early gathered at Tawkay SXXg's and his wife's boutique - OXXX MXXX, which means beyond XXXX in English, according to him. Stunning collections of female fashion with very reasonable price. Anyone looking for good quality, at the edge of fashion and yet seeking for great value, go to his shop. Great interior design too. Ladies must go and buy from his shop lar, support a bit mah.


We proceeded straight to the cellar and ordered 2 bottles of wine - one red and one sparkling white wine. Our special instruction - Don't give us anything more than RM100/bottle! And ta! ta! - RM76 each. BTW, the VIP room was fascinating. Nicole was a member, that's how we got the room.

When Nicole arrived at 10:30p.m, we had another red wine at RM99.99 (still below our budget). That certainly tasted better than the earlier red. Can't remember the brand (and too drunk to take another photo) but heck, I'll never spent so much on a bottle for personal consumption. It was fabulous.

Key highlights of the night on what we talked about:

1. Establishment of the Kuen Cheng Speculative Fund - Not for the faint hearted and extremely dangerous. Is about time we make some money here and we are coming with a fund that do nothing but make money. Thus, Pang Ling promised a contribution of RM20,000, Tawkay Seng RM10,000, Nicole still no exact figure yet and she is going to contribute into the fund. Me, talk so much that night and maybe contributing RM2k first lar... Su Yin and Sammi - RM2-3k too maybe. The rest who did not turn up, you are wellcome to contribute some money too.

Apparently, Nicole is the queen of punters, the punter amongst the punters with solid track record of "frying" the share market, particularly the second or third liner counters. I suspect that she is the leader of the syndicated gangs and the owner of the loan shark organisations too - we promised to keep it hush hush. So don't worry Nicole, we won't tell.

We had also appointed Queen Punter Nicole as our ruthless fund manager too. So, she will call the shot on the management of the fund full time and she will undate us with the monthly transaction update.

For those who wish to participate, remember, make sure you are prepared to lose the money okay. Invest only if you can afford it.

Like the old Chinese saying - "money caused friction to friendship", the following are the rules you need to follow before thinking about contributing, to avoid the above:

• We will not question Nicole's decision on the transaction. Example, if she sold off the shares too early and the price continue to hike, no one should question her decision. Same if the price is trending south and she continued to hold on, no one should question her decision of not cutting loses. We must trust her judgement.
• As I mentioned yesterday, I do not believe in charity work. Since all of us contribute money and not working, and literally Nicole will be the only one contributing most effort and money, we must give her commision on profit gain. As discussed yesterday, it maybe in the region of 5-10%. Thus, Nicole - eventhough she didn't want to take the commission, I strongly propose her to take it
• Nicole must provide us with the transaction detail on monthly basis
• Once putting in the money, you must NOT cash out within 12 months. Ah Seng proposed 6 months but I think 12 months is a better period for liquidation purposes - holding power mah especially when a share is trending down
• Anyone can top up your investment. For example, 3 months down the road, when Ah Seng wants to top up another RM10,000, he is wellcome too. Please see the following on the impact of profit sharing if one decided to do so

Feel free to add on if you can think of any.

In terms of profit sharing, this is how it works, for example:
Pang Ling - RM20k (43%)
Ah Seng - RM10k (22%)
Punter Queen Nicole - RM10k (22%)
Me - RM2k (4%)
Su Yin - RM2k (4%)
Sammi - RM2K (4%)
Total = RM46K. (100%)

Thus, Pang Ling will be entitled to 43% of the profit gain (minus off cost and Nicole's commission). Since anyone can throw in more money within any period (remember, you cannot cash out for 12 months), it can be quite tricky on profit gain calculation. Thus, I propose something like a pro-rated basis. Confused? Here is the example to explain better:

Let's say the above profit sharing structure remains for 3 months, then suddenly Ah Seng decided to throw in another RM10k. Thus, the new profit sharing structure will be:
Pang Ling - RM20k (36%)
Ah Seng - RM20k (36%)
Punter Queen Nicole - RM10k (18%)
Me - RM2k (3.6%)
Su Yin - RM2k (3.6%)
Sammi - RM2K (3.6%)
Total = RM56K. (100%)

With this, Pang Ling will be entitled to profit sharing of 43% of profit within the first 3 months, but 36% for the remaining 9 months (assuming that no one throw in more money lar).

Do remember that this is the profit sharing structure, it will be the same for expenses/cost contribution too. For example again, if Pang Ling is responsible for 43% or 36% of the profit, he will be tied with 43% or 36% of Nicole's commission and other expenses as well.

Does the above make sense? Feel free to share your view.

You know, we can do other things as well with this - for example - coming up with a Kuen Cheng Property Fund - we buy houses and shop lots with a combined fund while getting someone to manage the rental. See, I may not be able to invest in a RM1 million shoplot. But with this fund available, we can afford one.

Even come up with a Kuen Cheng Water Machine Fund too, the one that Nicole invested RM20k! We can invest in one too you know?

I am very excited about the property fund. Do let me know how you feel.

In terms of the "name"/owner of the fund, as mentioned, I have a company here "Sdn Bhd" to sell off. If you all want, I can convert the company for this purposes. I paid more than RM2,000 for this company and it will cost us RM50 per month to maintain it. Let me know if you want to invest. Name of the shareholders and name of the company will have to change lar. This will cost another RM300 - RM500 to do so.

2. How to get capital to start your business/investment?

Spoke to the rest and realised that many are not aware of this method of getting more cash to invest. Okay, here is the proven method and this was what I did to get my investment capital. Actually, this is nothing new and many did that.

If you have a property under your name (and you must have one), you can always withdraw money from you EPF account 2 to reduce your home loan. Then, you can refinance your house again and get double to money! Eg. of what I did - I took out RM30k from my EPF account and reduce my home loan. Then I re-finance with the same bank and get RM60k of extra cash.

Now see, if you get a personal loan or Overdraft, it will cost you more than 8%, some even charge you at 12%! But with refinance, you enjoy 4-5% of home loan interest rate. Huge savings man.

I tried that. It works. However, make sure that you discuss with your homeloan banker first yeah... Don't blind blind do.


Okay lar. Time for me to stop. We wellcome all parties to invest especially foreign investment from US (Clive) and HK (Zoe).

Lastly, we had real fun last night talking about this and Su Yin even drunk already (look at her in the picture man). Sammi was sober and make sense throughout the night.

Have fun. See you again. I was almost drunk..