Patent ID: 7966238

Claim:
A method for forming an investment fund, the method comprising steps of, using one or more processors coupled to a non-transitory media: (a) forming, using the one or more processors, a fund configured to receive investment capital from at least two classes of investors, wherein the at least two classes of investors include a first levered or unlevered class and a second levered class, and wherein each levered class is defined by a different leverage ratio; and (b) opening, using the one or more processors, a prime brokerage account organized under said fund and configured to receive said investment capital from said fund to acquire securities, wherein said prime brokerage account is formed with at least three sub-accounts including a first class account configured to receive contributed capital from the first levered or unlevered class through the fund, a second class account configured to receive contributed capital from the second levered class through the fund, and a general trading account, and wherein said prime brokerage account is configured to receive two levels of leverage from a prime broker in a form of class loans to said second class account as a function of the investment capital invested by the second levered class and of a leverage ratio associated with the second class of levered investors, and in a form of margin loans to said general trading account.