How RainFrog Works

RainFrog in a Nutshell

A partner has an idea for an investment opportunity and shares it with the partnership via email, the RainFrog list serve or the RainFrog forum.

The officers coordinate a research effort by finding partners who are interested in conducting the social, environmental and financial research. An in-depth research report is produced for the proposed investment

The proposed investment is included in the monthly ballot and posted with its research report on the RainFrog forum and emailed to the partnership by the President. Partners have the opportunity to discuss the proposed investments on the forum.

Each partner votes to invest or not in the proposed investments. An acceptable buy price and stock quantity can be set by partners if they so choose. A partner's vote is weighted according to their share of the partnership. No partner can exceed a weight of 1/2.

The buy order is executed if the market price is at or below the buy price agreed upon by the majority of the partnership.

The company's news is followed for any changes in its ethical values, earnings reports and stock price.

If a company in RainFrog's portfolio ceases to meet the ethical criteria set, RainFrog engages in shareholder activism or divests from the company. If the stock becomes over-priced, the partnership votes on selling. Once a stock is sold, the partnership continues to follow the company and it's stock for future buying opportunities.

Participatory Investment

RainFrog partners pool their investment capital to obtain the advantages of collective investment. In structure we are a limited partnership, and every partner has a voice in our governance. Each action RainFrog takes, from investment decisions to the election of officers, is determined by the partners at monthly electronic meetings.

Elected Officers

RainFrog's elected officers play a key role in the day to day operation of the partnership. Officers facilitate the monthly meetings and carry out the partners' investment decisions between meetings. Officers are bound by the Agreement of Partnership to act on behalf of the partnership in strict accordance with the instructions of the partners.

Working Together

All RainFrog members share equally in the results of the partnership. It is impossible for one member to make money while another loses. Thus, we believe that the role of every partner is important. Partners contribute more than just capital. We value each partner's contribution to investment research, and call on our diverse base of partners for knowledge specific to each partner's area of expertise. RainFrog's members are more than an investment partnership—we're a team.

The value we place on teamwork is reflected in our "Contributions in Kind Program." For every $500 he or she has invested in RainFrog, each partner contributes one hour per year to helping manage the partnership. Contributions in kind reflect the particular skills of each partner. Some partners research investments, others manage the web site or help to coordinate our shareholder activism efforts. If a partner doesn't have time to participate in the Contributions in Kind Program, he or she can opt instead for a 1% annual fee to offset management costs.