As hedge fund performance results are weak or negative, managers are becoming more interested in decreasing the costs that the management company bears directly as well as those costs which are borne by the fund. Continue reading
What should I name my Hedge Fund?
For start-up hedge fund managers, finding the right name for the hedge fund and management company can be very difficult. You want to be able to convey the message with your name, but there are other considerations such as general hedge fund naming conventions and of course the availability of good domain names (for your hedge fund website). Below are some general ideas we recommend when asked about naming: Continue reading
State Level Hedge Fund Investment Advisor Exemptions – Connecticut Exemption
Hedge fund managers which are not required to register as investment advisors with the SEC because of the exemption in Section 203(b)(3) of the Investment Advisers Act may still need to register as investment advisors with the state securities commission of the state where they have their place of business. Continue reading
he following is a summary of the major laws which affect the hedge fund industry. If you have any questions on how these laws impact hedge funds in general or your specific situation, please contact us.
Securities Act of 1933 – the 1933 Act was enacted on May 27, 1933 as a reaction to the market crash of 1929. The overarching purpose of the act was to require that all “securities” be registered with the government (at the time the FTC). The Act provides some exemptions from this general requirement; for hedge fund managers, the most important exemption from registration is found in Section 4(2) which provides that securities will not need to be registered is they are sold in a transaction which does not involving any public offering. Continue reading
At a recent speech at the 2008 CCOutreach National Seminar, a seminar for the Chief Compliance Officers of registered investment advisors, SEC Chairman Christopher Cox noted the importance of compliance offices during these volatile times. Cox noted that CCOs are partners with the SEC to ensure that investment advisory firms remain compliant and follow all investment advisory rules and regulations. The speech is reprinted below. Continue reading
The Hedge Fund Law Blog has been running for almost four months now (although we’ve posted articles previously written) and we appreciate all of the comments and insights from hedge fund managers and hedge fund service providers. Our goal is to provide the most relevant legal information to hedge fund managers as possible, so please let us know if you have any questions we can answer. Our other goal is to help managers establish their hedge funds so please contact us if you are thinking of starting a fund.
The following are the most popular articles on the hedge fund law blog as today:
- What Licenses do you need to Start A Hedge Fund?
- What is a Qualified Purchaser?
- How to register as a CPO or a CTA
- Hedge Fund Redemption and the Gate Provision
- Blue Sky Laws and Filings for Hedge Fund
- What is an Accredited Investor?
- Hedge Fund Offering Documents
- The Series 65 Exam
- Hedge Fund Formation Legal Fees
- Real Estate Hedge Fund Structure
- What Expenses Does a Hedge Fund Pay For?
Please contact us if you want to see articles on other topics or if you would like to start a hedge fund.
Can a manager lauch a successful hedge fund with less than $1 million in assets? Yes.
While having a large amount of AUM when starting out can be helpful, start up hedge fund managers do not necessarily need to start with a large asset base to have a large, successful hedge fund. Case in point – David Einhorn. David Einhorn started his hedge fund in 1996 with $900,000. His Greenlight Capital fund now has AUM of around $5 billion. Continue reading
In working toward greater oversight and regulation of the capital markets (which, in this case, many people in the hedge fund industry agree with), the SEC and CFTC signed a memorandum of understanding with the Federal Reserve Board on the CDS markets. Below is a release from the SEC and from the Treasury. Continue reading
Hedge Fund Investment Strategies
Long-short equity is a popular hedge fund strategy where in which the manager initiates both long and short positions in the portfolio. The exact strategy or substratgey the manager uses will be proprietary and the percentage of longs and shorts will differ with each manager. Continue reading