CFTC – Commodities Futures Trading Commission
NFA – National Futures Association
High water mark
Investment Adviser Representative – means an individual employed by or associated with an investment adviser or federal covered investment adviser and who makes any recommendations or otherwise gives investment advice regarding securities, manages accounts or portfolios of clients, determines which recommendation or advice regarding securities should be given, provides investment advice or holds herself or himself out as providing investment advice, receives compensation to solicit, offer, or negotiate for the sale of or for selling investment advice, or supervises employees who perform any of the foregoing. The term does not include an individual who: (A) performs only clerical or ministerial acts; (B) is an agent whose performance of investment advice is solely incidental to the individual acting as an agent and who does not receive special compensation for investment advisory services; (C) is employed by or associated with a federal covered investment adviser, unless the individual has a “place of business” in this State as that term is defined by rule adopted under Section 203A of the Investment Advisers Act of 1940 (15 U.S.C. Section 80b-3a) and is (i) an “investment adviser representative” as that term is defined by rule adopted under Section 203A of the Investment Advisers Act of 1940 (15 U.S.C. Section 80b-3a); or (ii) not a “supervised person” as that term is defined in Section 202(a)(25) of the Investment Advisers Act of 1940 (15 U.S.C. Section 80b-2(a)(25)); or (D) is excluded by rule adopted or order issued under this [Act].
Qualified eligible person
Hybrid hedge fund – the hybrid hedge fund has become more popular in the last few years as managers realize they can mimick the prop desks of the major investment banks by playing the securities markets as well the private equity markets. In a hybrid fund the investment strategy is generally two fold – first there is some sort of securities trading part of the program similar to a traditional style hedge fund (credit manfredine); second, there is some more illiquid portion of the program which might be a private placement into an operating company, real estate, etc. The hybrid fund is characterized by, among other things, the side pocket account.
Side pocket accoount