Most investors contemplating investing in a hedge
fund believe they are presented with a set of fixed terms for
their investment. These terms are outlined in the private offering memorandum
and appear to apply across the board to all investors. However...
Insider trading is an area of risk that hedge
fund management finds very difficult to identify and prevent. While the
problem has become increasingly prevalent, the tools to be able to assist hedge
fund managers have not expanded proportionately. A...
Securities regulations have many goals (prevention
of misdeeds, market stability, investor protection), however, for those who
can navigate the system, new hedge fund regulations will have the
effect of increasing transparency for hedge fund investors...
The regulatory focus on hedge funds continued during the
first quarter of 2012, as new initiatives continued to roll out, and milestones
in the implementation of rules put on the books last year were hit.
For "large" hedge funds, we see...
The results of coordinated state examinations of
investment advisers in the first half of 2011 by the North American Securities
Administrators Association (NASAA) reveal significant deficiencies in a
broad range of areas. As investment advisers gear...
The role of directors on offshore hedge funds has often been,
at best, a limited oversight role, with perfunctory annual meetings and limited
interchange with the fund itself during the year.* This has been changing
- slowly- as compliance moves to...
Hedge fund style "drift" is
said to occur when a hedge fund manager strays from their stated investment
strategy. The term used to be an esoteric one, used only by professional
hedge fund analysts. However, "drifting" is a problem...