Today's Investment Rip-Off: The Ocyle Facebook Fund

Just can’t stand the thought of not owning 2010’s hottest IPO–Facebook–now, a year ahead of time? 

Then a clever private fund is happy to take your money to help you.

The “Ocyle Facebook Partners Fund” exists for one simple purpose: The joy of charging you 2% a year and 20% of any profits to buy Facebook stock from Facebook employees now, before the IPO.

Of course, Facebook employees aren’t idiots, so they’re not going to give the stock away.  And, of course, if you really want to invest $50,000 in Facebook (the minimum fund investment), you might have enough to head over to SecondMarket, which makes a market in private stocks like Facebook, and buy the stock yourself–without paying a positively outrageous fee to Ocyle.

(Yes, you probably have to be an Accredited Investor to buy stock from SecondMarket.  But if you’re not an Accredited Investor, you have no business investing in Facebook or, worse, paying a tiny private fund 2% and 20% to do it for you).

But if you just can’t stand not owning some Facebook, here’s some more info about the Ocyle fund:


Ocyle Group Executive Summary Final 08.29.09

And here’s the New York Times with some details about your fund manager (note the extensive investment expertise):

RANJIT MATHODA is a 36-year-old California lawyer who runs a blog, paints, writes poetry, reads a book a day and dabbles in “designing clever things that may not change the world,” according to his Web site.

One of those “clever things” is a $5 million fund that Mr. Mathoda and four friends are raising from outside investors to buy stakes in Facebook from employees of the social-networking juggernaut.

Mr. Mathoda’s new company, the Ocyle Group, is among a handful of investment managers that have popped up to buy shares in privately held start-ups like Glam Media, LinkedIn and Twitter.

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