{"id":81,"date":"2008-04-10T06:57:13","date_gmt":"2008-04-10T14:57:13","guid":{"rendered":"http:\/\/www.hedgeco.net\/hedgeducation\/hedge-fund-articles\/what-is-a-qualified-client\/"},"modified":"2009-08-06T07:45:13","modified_gmt":"2009-08-06T15:45:13","slug":"what-is-a-qualified-client","status":"publish","type":"post","link":"https:\/\/www.hedgeco.net\/hedgeducation\/hedge-fund-articles\/what-is-a-qualified-client\/","title":{"rendered":"What is a Qualified Client?"},"content":{"rendered":"<p>With regards to <a href=\"http:\/\/www.hedgeco.net\">hedge fund<\/a> investing, an accredited investor is not to be confused with a <strong>&#8220;qualified client<\/strong>.&#8221; Qualified Clients are the most attractive investors for <a href=\"http:\/\/www.hedgeco.net\/hedgeducation\/hedge-fund-articles\/hedge-fund-manager\/\">hedge fund managers.<\/a> They must meet one of the following criteria:<\/p>\n<ul>\n<li>A natural person who or a company that immediately after \tentering into the contract has at least $ 750,000 under the \tmanagement of the investment adviser<\/li>\n<\/ul>\n<ul>\n<li>Has a net worth (together, in the case of a natural person, \twith assets held jointly with a spouse) of more than $1,500,000 at \tthe time the contract is entered into<\/li>\n<\/ul>\n<p>The reason that qualified clients are more sought after is because in most states, <a href=\"http:\/\/www.hedgeco.net\/hedgeducation\/hedge-fund-articles\/hedge-fund-manager\/\">hedge fund managers<\/a> are only allowed to charge a performance fee (generally 20%) to qualified clients. This means that <a href=\"http:\/\/www.hedgeco.net\/hedgeducation\/hedge-fund-articles\/what-is-an-accredited-investorqualified-client\/\">accredited investors<\/a> are only required to pay the management fee (usually 2%). This is somewhat of a gray area, however, because as soon as an accredited investor reaches the $1.5 million mark, their status changes to a qualified client.  Non-U.S. persons are not required to meet the prerequisites of a qualified client.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>With regards to hedge fund investing, an accredited investor is not to be confused with a &#8220;qualified client.&#8221; Qualified Clients are the most attractive investors for hedge fund managers. They must meet one of the following criteria: A natural person who or a company that immediately after entering into the contract has at least $ 750,000 under the management of [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1,18],"tags":[27,6,15,56],"class_list":["post-81","post","type-post","status-publish","format-standard","hentry","category-hedge-fund-articles","category-18","tag-accredited-investors","tag-hedge-fund","tag-hedge-fund-manager","tag-qualified-clients"],"_links":{"self":[{"href":"https:\/\/www.hedgeco.net\/hedgeducation\/hedge-fund-articles\/wp-json\/wp\/v2\/posts\/81","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.hedgeco.net\/hedgeducation\/hedge-fund-articles\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.hedgeco.net\/hedgeducation\/hedge-fund-articles\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.hedgeco.net\/hedgeducation\/hedge-fund-articles\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.hedgeco.net\/hedgeducation\/hedge-fund-articles\/wp-json\/wp\/v2\/comments?post=81"}],"version-history":[{"count":0,"href":"https:\/\/www.hedgeco.net\/hedgeducation\/hedge-fund-articles\/wp-json\/wp\/v2\/posts\/81\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.hedgeco.net\/hedgeducation\/hedge-fund-articles\/wp-json\/wp\/v2\/media?parent=81"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.hedgeco.net\/hedgeducation\/hedge-fund-articles\/wp-json\/wp\/v2\/categories?post=81"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.hedgeco.net\/hedgeducation\/hedge-fund-articles\/wp-json\/wp\/v2\/tags?post=81"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}