SEC Staff Reminds CEOs Of Registered Firms of Importance of Compliance Programs (SEC Release)

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SEC Staff Reminds CEOs Of Registered Firms of Importance of Compliance Programs
FOR IMMEDIATE RELEASE
2008-283

Washington, D.C., Dec. 2, 2008 — The Securities and Exchange Commission’s Office of Compliance Inspections and Examinations today issued an open letter to chief executives of SEC-registered firms, including broker-dealers, investment advisers, investment companies and transfer agents, to remind them of the critical role played by their firms’ compliance programs in assuring that their operations comply with the law and rules for industry participation and to ensure that the interests of customers or clients are protected. Continue reading →

Hedge Fund Accounting Firm Named Tops in 2008 (Press Release)

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Rothstein Kass Rated Top Accounting Firm in 2008 Hedge Fund Service Providers Survey by Alpha Magazine

NEW YORK, Dec 01, 2008 /PRNewswire via COMTEX/ — CPA firm Rothstein Kass rated first among accounting firms in the 2008 Alpha Awards(TM), an annual ranking of hedge fund service providers sponsored by Institutional Investor’s Alpha Magazine. Results were based on voting by more than 1,000 hedge fund firms with aggregate assets in excess of $1.5 trillion. Researchers asked participants to rate the quality of service received during the 12 month period ended March 31, 2008. Rothstein Kass finished first overall for client service and also topped the list of “small firms’ favorites,” and “big firms’ favorites.” The firm was also the top firm in the “audit,” “regulatory & compliance” and “hedge fund expertise” categories. Continue reading →

Hedge Fund Consultant

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Hedge fund consultants are individuals or firms that provide a variety of different services to hedge funds and hedge fund managers.  These individuals or firms typically have significant industry expertise and a strong network within the investment management industry.  These groups also tend to have a strong working knowledge of the mechanics of the hedge fund investment process.  Accordingly, managers will utilize hedge fund consultants for a variety of reasons in order to get the most out of their hedge fund. Continue reading →

Hedge Fund Structure – Hedge Fund Organizational Chart

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A common issue which often arises is exactly what manner in which the investors actually subscribe to the fund and how the fund actually invests the money.  The attached chart (Hedge Fund Organizational Chart) provides a typical hedge fund organizational structure.  The chart also details the movement of the management fee, the performance fee, the movements of money, and hedge fund subscriptions or withdrawals. Continue reading →

Withdrawing from Investment Advisor Registration – the Form ADV-W

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For many different reasons a hedge fund manager will decide to de-register as an investment advisor.  The manager may no longer be required to be registered or a manager may have registered simply for marketing purposes and has found that it is too much of a hassle (and cost) to be registered.   In such instances a hedge fund manager can withdrawal from registration by filing Form ADV-W through the IARD (Investment Advisor Registration Depository) system.   The process for de-registering is substantially the same whether the manager is registered with the SEC or with the state securities commission.  This article will discuss (i) issues with de-registration for the hedge fund manager and (ii) detail the process of deregistering.  Continue reading →

Recommended Hedge Fund Articles for Start-up Hedge Fund Managers

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Last week we posted our most popular hedge fund articles to date.  This week we are providing start up hedge fund managers with a “hedge fund manager start up guide” which consists of the most important articles for start-up (and existing) hedge fund managers.  The following article provide you with the background information you need to be prepared to begin the hedge fund formation process.

Our group has worked with over 200 start up hedge funds and hedge fund managers and we know the issues which managers are concerned about.  Please contact us if you have any questions on these articles.

Hedge Fund Presentation

  • Start Up Presentation – this voice-over presentation goes over most of the topics covered in the posts below.  The presentation is about 40 minutes long and discusses the basic issues involved in starting a hedge fund.

The Basics

Investors and Fees

Structural Issues

The Laws

Raising Hedge Fund Assets

Other Recommended

Hedge Fund Service Providers Overview

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The hedge fund industry includes not only the hedge fund managers and the investors, but also the service providers that help the hedge fund and the manager with the day to day duties associated with running a hedge fund.

The industry has grown rapidly over the last decade and continues to develop at an ever rapid pace.  In the beginning there were hedge fund attorneys, prime brokers, hedge fund administrators, hedge fund auditors, but now we also have consultants, website designers, due diligence experts and compliance firms.  All of these businesses fall within the category of hedge fund service providers.  I’ve detailed the various roles of these businesses on other parts of this blog, but am producing this overview which should be especially helpful for start-up hedge funds. Continue reading →

Paulson to Hedge Funds: Time for Hedge Fund Registration

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Treasury Secretary Paulson spoke today about new financial market regulations.  In his remarks he mentioned that there should be some new hedge fund regulations which allow oversight by a market regulator. I have posted an excerpt containing the comment as well as the whole speech. Continue reading →

Hedge fund advertising – Can a hedge fund manager run a blog?

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Blogs have become important tools in the investment management industry and have allowed even the most unsophisticated computer user (ahem….hedgefundlawblog….) to post useful thoughts and information for other industry participants to examine and opine upon.

Some hedge fund managers may want to use the internet and blogs to vet ideas or to discuss certain parts of their strategy, which begs the question whether such activities are legal under the federal (and state) securities laws.   As we see it, there are three central issues which a hedge fund manager must be aware of when deciding whether to blog: (i) the Regulation D rules prohibiting general solicitation, (ii) the “no holding out” requirement for investment advisor exemption, and (iii) the anti-fraud rules (no manipulation).  We will examine these issues in turn and then provide recommendations. Continue reading →