View Full Version : Hair Fund

Fixed by 35
03-19-2010, 08:41 AM
I've recently been considering the prospect of creating and managing an investment fund which invests solely in companies leading research into reversing, treating and possibly even curing hair loss. This idea is in its infancy at the moment, but I'd be curious to know whether anyone else would be interested.

My proposal would be to create a fund committed to invest in at least 20 different companies, with a minimum subscription of US$500. The fund would be listed on the London Stock Exchange's AIM if sufficient interest was generated, but otherwise shares would be locked in for five years or until realisation of a cure.

I think this might be a good idea because a lot of people want to take action to fight hair loss but are currently restricted to buying drugs and topicals, most of which don't work. This would be a way of allowing people to pledge an amount to be invested to reverse their condition.

Obviously the investment would be high risk. Most research companies will fail and the biotechnology industry is risky enough as it is. Indeed, if one of the twenty companies comes up with a result, it is likely that all the other companies will fail and their stock will become worthless! However, that single investment should rocket in value.

The benefits of a fund would be as follows:

1) Research companies would have secured funding. The investment fund would pledge capital and only withdraw that capital if it becomes clear the company will never get a result or it becomes clear their technology is stolen.

2) The share price of the successful company will rocket. Those of us with less money for treatments may be able to afford the cure as a result of the appreciation in the value of our holding in the fund.

3) Investors money will be diversified across the entire research industry, hedging bets on the company which will come up with a workable solution.

Let me know what you think.