Hedge Fund Blogs From HedgeCo.Net


Category Archives: Hedge Fund Commentary

A Whodunit for Fund Managers

Piecing together clues to solve a mystery has a certain appeal – especially when the dramatic reveal shows that we were right. The same process of piecing together clues and evidence can be used to help Increase your AUM. Rest assured, it doesn’t require stakeouts, wiretaps and a reluctant ex-partner in the police department. In fact, you could be finding […]

How to Create A Cyber Security Culture + Employee Security Awareness

Did you hear the story of the Central Bank of Bangladesh that lost $100 million to hackers? It happened in February 2016 and goes like this. The bank believes Chinese hackers executed a hack that allowed $100 million to be taken from the bank’s foreign exchange account at the Federal Reserve Bank of New York. This is just the latest […]

Wall Street’s Most Thankless Job – Compliance Officer

February 3, 2016 Dear Friends, This morning the Wall Street Journal published an article on ” The Most Thankless Job on Wall Street” – compliance officer. According to the article, recent enforcement actions that have found compliance officers personally liable are driving experienced people to be more cautious about the profession – compliance officers say they feel unfairly singled out. […]

Top 5 Reasons Managers Need a Research Management Software (RMS)

In today’s competitive market, research management software (RMS) has become a must-have integrated feature for investment management firms. Significant benefits offered via RMS have caused a ripple effect of soaring adoption rates across the global investment industry. In this article we’ll examine how adopting a research management solution could benefit your firm. Central Repository With offices, colleagues and clients spread […]

FINRA Suspends Rep for Failure to Disclose OBAs

Dear Friends, FINRA suspended a registered representative for failure to disclose outside business activities, resulting in a $15,000 fine and a six month suspension from association with any FINRA member. The representative failed to disclose that he was a director and officer of a publicly traded company and the existence of an outside securities account in his name. Additionally, the […]

Supreme Court to Hear Insider Trading Case

January 20, 2016 Dear Friends, The U.S. Supreme Court agreed to review a ruling of the U.S. Court of Appeals for the Ninth Circuit, which could clarify a key element of insider trading – what constitutes a personal benefit –  resolving a dispute between divided federal courts of appeals. Second Circuit Decision: In December 2014, the U.S. Court of Appeals […]

SEC 2016 Exam Priorities

January 11, 2016 Dear Friends, The SEC announced its examination priorities for 2016, as outlined below. Private Fund Advisers: The SEC’s examination of private fund advisers will focus on fees and expenses evaluating, among other things, the controls and disclosures associated with side-by-side management of performance-based and purely asset-based fee accounts. Never-Before-Examined Investment Advisers and Investment Companies: The SEC will […]

CFTC Settles Insider Trading Case

Dear Friends, For the first time, the CFTC settled an insider trading case pursuant to CFTC Regulation 180.1 (“Rule 180.1”), promulgated under The Dodd Frank Act, resulting in a lifetime trading ban for the trader, a civil monetary penalty of $100,000 and a restitution payment of over $200,000. Rule 180.1 enhances the CFTC’s ability to prosecute fraud in connection with […]

SEC Cybersecurity Hit List: 6 Items a Hedge Fund Better Have Covered

Earlier this week we presented at a Wells Fargo Prime Services breakfast briefing on cybersecurity. During the discussion, one panelist reminded attendees that the SEC has clearly defined (and communicated) its cybersecurity expectations. He recapped the following six areas advisers must have covered to demonstrate preparedness to regulators. 1. Risk Assessments 2. Governance 3. Training 4. Access Control 5. Vendor […]

Former SEC Commissioner on Third Party Exams

December 10, 2015 Dear Friends, Former SEC commissioner Troy Paredes recently urged investment advisers to express their opinions regarding a forthcoming SEC rule that would require third parties to conduct examinations, on behalf of the SEC. As SEC Chair White stated in April 2015, the SEC is “advancing rule makings….to require a program of third party examinations of investment advisers to […]