Tag Archives: hedge fund


DITMo: Why Risk Parity Hedge Funds are Return Parity Vehicles

  As hedge funds increasingly employ new approaches to asset allocation there has been a rise in the use of Risk Parity funds.  The vulnerability of Risk Parity funds is that they allocate by risk rather than by value. That is actually a bet on whether equities will outperform the return of additional risk adjusted asset class allocations utilizing leverage. […]

Five Points from SEC’s 2016 Business Continuity Guidance Update

        In June 2016, the SEC delivered a guidance update for registered advisers regarding how funds (and their service providers) plan for potential business disruptions. Following are key takeaways from Eze Castle Integration’s Certified BCP Planners on how hedge funds and private equity firms can meet the SEC’s expectations around business continuity practices. Capture All Essential Components of […]

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 […]

Supreme Court Denies Request to Hear Newman Case

October 5, 2015 Dear Friends, Today, the U.S. Supreme Court officially refused to hear the United States v. Newman insider trading decision. By way of background: In December 2012, Todd Newman and Anthony Chiasson were convicted of securities fraud and sentenced to prison after their trades in certain stocks, allegedly based on a chain of material non-public information, resulted in […]

SEC Charges HF With Taking Unearned Management Fees

September 8, 2015 Dear Friends, A Seattle based hedge fund agreed to pay disgorgement of over $800,000, after being charged by the SEC with fraudulently inflating the value of its investments, in order to attain unearned management fees. The SEC also charged the fund’s outside auditors with performing a deficient audit, enabling the firm to send misleading financial statements to […]

Hedge Funds Agree to $180 Million SEC Settlement

August 18, 2015 Dear Friends, The SEC announced that two asset managers agreed to pay $180 million to settle charges that they defrauded investors and failed to implement policies and procedures to prevent employees from making contradictory and false representations. According to the SEC, the hedge funds in question were highly leveraged, yet employees made misleading representations- assuring investors that […]

Matt Okolita to Participate at HFA Event on June 3, 2015

May 20, 2015 Dear Friends, CounselWorks is pleased to announce that Matt Okolita, Managing Director, will participate in the HFA’s New York Symposium’s panel discussion on Wednesday, June 3, 2015. Topics include: Avoiding common mistakes that lead to hedge fund failures; Understanding what and when in a fund’s lifecycle to in-source and out-source; Aligning management, internal teams and external third-party […]

SEC Charges Former Hedge Fund Manager

Dear Friends, Yesterday, the SEC announced charges against a former hedge fund manager for taking excess management fees from clients and using the money to remodel his home and buy a Porsche. Additionally, the SEC fined the hedge fund manager’s firm $150,000, for failing to supervise the him, even though the firm expelled him and reimbursed the hedge fund, once […]

SEC Charges Firm with Pay-To-Play Violation

June 26, 2014 Dear Friends, For the first time, the SEC charged an investment adviser with violating the pay-to-play rules adopted in 2010. The firm paid an almost $300,000 fine due to $4,500 in campaign contributions made to a Philadelphia mayoral candidate and the Governor of Pennsylvania. The firm continued to accept fees from two public pension funds, within two years […]

SEC Charges Hedge Fund With Whistleblower Retaliation

Dear Friends, For the first time the SEC filed a case under its new authority to bring anti-retaliation enforcement actions. The SEC charged a hedge fund with engaging in prohibited principal transactions and retaliating against the whistleblower. The firm agreed to pay $2.2 million and to hire an independent compliance consultant. The CIO conducted transactions between the hedge fund and […]