I'm running a small private mini-fund with and for a small group of friends. We pool the money and I use it to trade securities on all our behalf.
Profits/losses are realised both from capital gains and from trading.
People may enter the fund at different times and invest any amount.
I am having a very hard time working out the math to answer the following scenario: if we were all to exit right this moment, how should the profits be divvied out equitably (bearing in mind that there are differing investment amounts and people entered at different times).
Take for example this scenario:
Person Buy In Amount X Price Qty X Bought | Current X Price Current X Total A 1 Jan $100 $1.00 100 | $2.00 $200 B 1 Feb $200 $0.90 180 | $2.00 $360 C 1 Mar $250 $1.10 275 | $2.00 $550 Current Date: 1 April Total Buy In: $550 Current Fund Value: $1500 (after capital gains and trading profits)
It records a buy in for three different people in the fund at different times and at different amounts. Total invested was $550, and after three months we find ourselves with $1500 worth of stock X. We want to liquidate everything and divvy out profits.
How do I figure out an equitable profit distribution for each player? Is it even possible with this data?