Hedge Fund Articles

Category Archives: Hedge Fund Articles

Hedge Fund Articles is a listing of articles for hedge funds.

What is an Offshore Hedge Fund?

Hedge funds structured under foreign law, or located outside the U.S. are designated as “offshore hedge funds.”  Managers who desire to start a hedge fund offshore can enjoy several advantages over their domestic contemporaries. One advantage is that the fund and its investors are not subject to United States taxation. Another advantage is that since the number of accounts in […]

Hedge Fund Performance

When analyzing hedge fund performance, there are many factors to consider. Hedge fund managers classify their returns several different ways and it is important to consider all of these before ascertaining a ‘real’ number. One distinction that is important to remember when interpreting hedge fund performance is whether the returns are net of fees, or are computed prior to fees. […]

Hedge Funds ( Legal Definitions )

Hedge funds normally do not register with the SEC. Hedge Funds are designed as partnerships, with the general partner typically being the hedge fund’s manager. The hedge fund manager usually makes investment decisions, and has a portion of his/her wealth within the fund. Under the Investment Company Act of 1940, there are two exemptions in which hedge fund managers rely […]

Timing and your investment decisions revised

There is an old cliché people use when they are discussing real estate: “Location, location, location!” This is certainly good advice for anyone considering a real-estate purchase, but better advice would be: “Location, location, timing.” I have first hand experience that will make this abundantly clear. Several years ago my family and some other investors were involved in the purchase […]

Hedge Fund Administrator

Having a hedge fund administrator for your fund is extremely important in today’s constantly changing hedge fund environment. A hedge fund administrator does not manage your portfolios, trade or research, develop products, raise capital, or manage client relationships. These functions are the core functions of your business that tend to be out-sourced infrequently. A hedge fund administrator services your clients […]

Making your hedge fund website SEC compliant

Internet websites have to be careful with respect to general solicitations and advertising, and thus must limit the content of the website in addition to the people who have access to the site. Hedge fund advisers using the Internet to market hedge funds are subject to the same registration exemptions as they would be in engaging in private offerings. If […]

What is a Hedge Fund?

A hedge fund is a private investment fund open only to sophisticated investors. Depending on the type of fund, the investor may need to fulfill the requirement of “accredited investor” or “qualified client.” In most states, hedge funds are not required to register with the Securities and Exchange Commission and are therefore often regarded as “secretive” or “unregulated.” In actuality, there have […]

Should Hedge Funds Be Regulated?

By Paul Oranika (August, 2007) Hedge funds: Background Issues and Controversies Hedge funds are pools of money from individuals and/or groups of qualified investors who met the requirements of the SEC. Unlike mutual funds, they do not trade on exchanges, and are not registered with the Securities and Exchange Commission; their investors are not granted the same consumer-protection benefits extended to […]