Calling Checkmate

11/4/20253 min read

There is a great deal of information a new member of Tabula Rasa Global needs to acknowledge:

There is a general code of conduct: "do onto others what you would thyself" as well as "mutual mutualism" signify how a member of Tabula Rasa Global will autonomously be guided through events which will inherently increase your influence over how you choose to serve your purpose to the organization. This is the quantum gravity which describes existential reformation of systemic failures due to integrity and honor being invalidated or even violated.

The following defines Tabula Rasa Global as a super business organization that will revolutionize the way we see finance:

Target Companies: Tabula Rasa Global Corporation (the overarching entity) will identify and either purchase a controlling stake (51% or more) or fully acquire other companies.

Transformation into Dividend Stocks: The goal is to transform the stocks of these acquired companies into high-dividend-yielding investments. This suggests operational improvements, financial restructuring, or strategic shifts within the acquired companies to generate significant distributable profits.

Investment Vehicle: Tabula Rasa Global Corporation Trust Fund (S Corp): This trust fund, structured as an S corporation for pass-through taxation, is the vehicle through which investors will participate.

Purchasing Mechanism: Tabula Rasa Global Investments LLC (Hedge Fund): The hedge fund will act as the purchasing agent for the trust fund, acquiring the shares of the target companies (presumably after Tabula Rasa Global Corporation has initiated the acquisition/transformation process).

Simplified Flow:

Investors -> Invest in Tabula Rasa Global Corporation Trust Fund (S Corp) -> Trust Fund uses Tabula Rasa Global Investments LLC (Hedge Fund) to purchase shares of target companies (after Tabula Rasa Global Corporation has acquired/transformed them into high-dividend stocks) -> Dividends from these stocks flow to the Trust Fund -> Profits (dividends) are passed through to the Trust Fund investors (beneficiaries) with S corp tax treatment.

Key Implications and Considerations:

  • Hedge Fund as Intermediary: Using the hedge fund to make the purchases adds a layer of management and associated fees. The trust fund investors will likely bear these costs, which will impact their overall returns. The rationale for using the hedge fund (e.g., specific expertise in these types of transactions) would need to be clear to investors.

  • Timing and Control: The timing of the trust fund's investment relative to Tabula Rasa Global Corporation's acquisition and transformation efforts is crucial. Will the trust fund invest before, during, or after the target companies become high-dividend stocks? The risk and potential return profile for investors will depend on this. Control over the acquired companies seems to reside with Tabula Rasa Global Corporation.

  • Dividend Sustainability: The promise of "highest return" through dividends hinges on the sustainability and growth of these dividends from the acquired companies. Investors will need to understand the strategies being employed to ensure these high yields are reliable over the long term.

  • Due Diligence on Target Companies: Thorough due diligence on the companies being acquired is paramount to ensure they have the potential to become high-dividend-yielding stocks. The expertise of both Tabula Rasa Global Corporation in identifying these targets and the hedge fund in executing the purchases will be critical.

  • Investor Risk Tolerance: While high dividend yields can be attractive, investors need to understand the underlying risks associated with the acquired companies and the strategies being employed to generate those dividends.

  • Transparency and Reporting: Clear and transparent reporting to the trust fund investors about the acquisition strategies, the performance of the underlying stocks, and the fees associated with the hedge fund will be essential for maintaining trust.

Potential Benefits for Investors:

  • High Dividend Income: The primary goal is to provide investors with a potentially high and consistent stream of dividend income.

  • Potential for Capital Appreciation: If the acquired companies are successfully transformed and become more valuable, investors could also see capital appreciation in the value of their stake in the trust fund (assuming the trust fund's value reflects the underlying assets).

  • Pass-Through Taxation (S Corp): The S corp structure of the trust fund aims to provide tax efficiency by passing income directly to investors.

Questions to Consider:

  • What is the specific expertise that Tabula Rasa Global Investments LLC (the hedge fund) brings to the table for these purchases that justifies its involvement and fees?

  • What is the strategy that Tabula Rasa Global Corporation will employ to transform acquired companies into high-dividend-yielding stocks?

  • What is the anticipated timeline for these acquisitions and the realization of high dividend yields?

  • How will the trust fund investors be kept informed about the progress and risks involved?