Operating Rules · v2 · Immutable
A closed fund built on twenty-five names and one rubric.
Reg D 506(b). Twenty units of $25,000 each. Twenty-five positions of $1,000 each. Every name passes the xSPI floor. The methodology is fixed; the instrument is the discipline.
§ 01
Structure
How the fund is constituted, governed, and exited.
Units
20 units × $25,000 = $500,000 total. GP holds unit 1; remaining 19 offered to invited accredited investors under Reg D 506(b).
Governance
5% ownership per unit at full subscription. Proportionate voting on fund decisions. At 2× cumulative valuation, membership votes on continue, distribute, or restructure.
Liquidity
Closed fund. Exit via sale at market to an existing member (right of first refusal cascades by slot order). If declined, fund redeems and remaining ownership scales up.
§ 02
Phase trigger conditions
Three gates, in order. No phase advances on intuition.
| No. |
Phase |
Trigger |
State |
| 01 |
Paper |
Inception 2026-01-02. All 25 paper-deployed at $1,000 each. Methodology validated against S&P 500 on matched dollars. |
Active |
| 02 |
Real Money |
Eighteen consecutive months without a losing month and 3× outperformance vs S&P 500. GP deploys real capital into unit 1. |
Pending |
| 03 |
Onboarding |
After Real Money trigger fires. Units 2–20 open by invitation. Quarterly reporting to all unit holders. |
Pending |
§ 03
xSPI Screening
Every position is scored against the proprietary xSPI rubric. The thresholds are non-negotiable.
Composite score floor
≥ 7.5 (long-hold quality floor; sub-threshold puts a holding on the watch list, not auto-sell).
Locked tier
≥ 8.5 (no profit-take rule applies, let it compound).
Dividend exposure
25% or more of the fund.
+1 moat boost
Best-in-industry leaders may receive a +1 moat boost on the Competitive Moat metric (scoring up to 11), based on stacking ≥3 of: market share, IP, network effects, regulatory ties, R&D leadership.
+1 iconic CEO boost
Truly iconic founder-CEOs may receive a +1 boost on Leadership Tenure (scoring up to 11). Reserved for figures whose departure would meaningfully change the company's trajectory.
Dip rule
Execute only on declines of 2-5% from recent highs. Never buy at 52-week highs. Never chase news.
Limit orders only
Buys are placed as limit orders for price precision. No market orders.
Equal weight
Each position is sized at 4% of the unit ($1,000 per stock for a $25,000 unit).
Sleeve discipline
Maintain Core (10) and Sleeve (15) at all times. Replace within the same sleeve.
No speculation
No options. No futures. No margin. No short-selling. Long-only equities.
§ 05
Sell Discipline
Conviction-tiered. High-conviction names (xSPI ≥ 8.5) are locked — let them compound. Mid-tier names sell when realized gains are sustained at the rerating-vs-compounding threshold appropriate to their sleeve.
Locked (xSPI ≥ 8.5)
No automatic profit-take. Hold until xSPI deteriorates below 8.5 at quarterly review or hard-exit conditions trigger.
Core profit-take (+50% sustained)
Core sleeve names with xSPI 7.5-8.49: sell when return reaches +50% from cost basis AND sustains 4 consecutive weekly closes at or above +50%. Single-week spikes do not trigger.
Sleeve profit-take (+100% sustained)
Sleeve overlay names with xSPI 7.5-8.49: same logic but threshold is +100%. Long-hold compounders earn the right to run further.
Quality drift
If xSPI drops below 7.5 for two consecutive quarterly reviews AND a pre-screened replacement is ready, sell and swap within the same sleeve.
Hard exit
Sell on a 50% loss from cost basis, no exception. Sell on structural break (accounting fraud, going-concern doubt, terminal decline) immediately.
Cash from sales
Profit-take proceeds become cash. Cash redeploys only when a 7.5+ replacement is ready in the matching sleeve.
No stop-losses
Stop-losses cause premature exits in volatile sectors. The rules above replace them.
Pre-screened bench
Maintain 5-15 candidates per sleeve on the xSPI Board, all already scoring xSPI ≥ 7.5.
Same-sleeve swap
When a position is sold, the replacement comes from the same sleeve to preserve sleeve weight.
Highest-score wins
Among ready candidates, the highest xSPI score takes priority. Ties broken by sector balance.
Daily
Price changes, news, earnings dips. Alert thresholds set at known target ranges.
Weekly (Friday close)
Portfolio snapshot, profit-take streak update, sector performance.
Quarterly
Full xSPI re-score across all 25 holdings. Threshold check. Watch-list update.
Annually
Stress test (e.g., 20% drawdown scenario). Document fund posture under stress.
Drawdown protocol
If fund drawdown exceeds 20%, liquidate 10% of holdings, prioritizing positions with the weakest xSPI scores.
Quarterly rebalance
Quarterly review of all holdings: xSPI re-score, sleeve allocation check, profit-take status check, watch-list update.
Sourced from the JUPPITR10 Stock Management Document and Stock Screening Methodology. xSPI rubric and discipline rules are immutable. Sector targets and sleeve composition evolve via the quarterly review.