Domain-based 'Mutual Fund' Announced

Domain Mart is offering a domain name investment service, modeled loosely on mutual funds that invest in stocks and bonds. Domain Mart's Alex Tajirian is offering to manage investments in domains and "domain-name based assets" (i.e. backorders) on behalf of clients with at least $50,000 to invest.

Until recently, domain name investing has been a specialized market in which the major players were industry veterans who practiced hands-on management. Lucrative deals for portfolios and individual domains have generated interest from venture capitalists and other outside investors, some of whom have staked Internet REIT to build a $250 million-plus portfolio. DomainMart's initiative offers a quick way into the market for investors who have substantial resources but limited experience buying and monetizing domain names.

That management service isn't free, however. Investors pay a 2% up-front "load fee" ($1,000 on a $50,000 account) plus a fee of $150 an hour for investment analysis (capped at $500 per investment). DomainMart also gets 5 percent of monthly revenue from the account. The domain names and assets are registered in the name of the account holder. See the prospectus (PDF) for additional details.

"Accounts are managed by experts in the field and each is tailored to the risk tolerance of the Account owner," says Tajirian, DomainMart President and CEO, who calls the service "a venue for high net-worth investors who wish to participate in the generous returns that domain name investments offer."

  Posted by RichM August 15, 2005 | Permalink | Newsletter

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Domain-based 'Mutual Fund' Announced - Aug 15, 2005





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