Hedge Fund Questions
For the new year we will publish a list of common questions we receive from our readers. This question involves hedge fund valuation.
Question: Can a hedge fund provide its own valuation?
Answer: Generally yes, provided that the hedge fund offering documents state that the valuation of the hedge fund’s assets will be conducted by the fund – more specifically by the hedge fund’s management company. In many hedge fund documents a provision which allows a manager flexibility in valuation is standard – although, it is likely that these normally nebulous provisions will become more specific as institutional investors require greater specificity in the offering documents. Continue reading