Just a quick note to the community that we’ve updated our post on hedge fund consultants to include a case study.  A reminder to all hedge fund service providers that we are actively seeking articles to help enhance our website.  We are particularly interested in articles on hedge fund accounting and administration including articles on FAS 157.  We are also interested in hedge fund link exchanges – please contact us to discuss.

A recent study by PerTrac reveals that not all hedge funds are having terrible performance returns in this volatile market environment.  The study also finds other interesting information including (i) many funds use little leverage and (ii) almost 50% of funds allow monthly redemptions (however the study does not mention the amount of funds which have used “gates” to limit redemptions). Other related hedge fund articles on Hedge Fund Law Blog include:

• Hedge Fund Databases
• Requirements for Hedge Fund Performance Reporting
• Hedge Fund Redemptions and the Gate Provision

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:

1. What Licenses do you need to Start A Hedge Fund?
2. What is a Qualified Purchaser?
3. How to register as a CPO or a CTA
4. Hedge Fund Redemption and the Gate Provision
5. Blue Sky Laws and Filings for Hedge Fund
6. What is an Accredited Investor?
7. Hedge Fund Offering Documents
8. The Series 65 Exam
9. Hedge Fund Formation Legal Fees
10. Real Estate Hedge Fund Structure
11. 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.

The SEC recently brought an action against the principal of a broker dealer for not being registered as a principal.  There are many instances where members of the investment management are operating without having the proper registrations or licenses and many times these people think that they can remain under the radar as long as they aren’t acting fraudulently.  In this instance the principal was not able to remain under the radar. Continue reading →

Because life settlements are a unique investment which has characteristics not associated with other types of investments creative managers can choose to structure a life settlement hedge fund in many different ways.  This article will detail (i) the potential life settlement hedge fund structures, (ii) life settlement investment program considerations, and (iii) a brief overview of life settlement taxation issues.  Continue reading →

In a speech given yesterday, CFTC Chairman Walker Lukken announced that he will step down as Chairman of the CFTC upon inauguration of President-elect Obama.  Chairman Lukken also advocated completely the scrapping of the current regulatory structure in favor of a “bold, new” regulatory system.  It is unclear how these comments will be interpreted by the CFTC, especially with regard to the release of the proposed forex registration rules.  Continue reading →

Capital introduction is the term used to describe investor referrals to hedge funds by prime brokers.  Many prime brokers and even mini-prime brokers will provide capital introduction services to their customers.  Typically this is done as a favor to the hedge fund and does not carry the high costs of a third party marketer.  However, unlike a third party marketer, the prime broker is probably not actively looking for investors for the fund and therefore actual capital introductions may be rare, depending on a number of factors including the individual broker and the investment strategy.  Continue reading →