Some interesting news today out of the SEC about new
enforcement actions by the SEC against hedge funds - specifically, against
three separate advisory firms and six individuals for alleged violations
initially uncovered through the results of SEC...
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...
In one of the most visible moves as a result of the new
SEC regulations on investment advisers, George Soros is closing his $25 billion
Quantum Endowment Fund to outside investors and returning their money.
"We have relied until now...
The hedge fund world has always walked a fine line when
it comes to attracting new investors. And nowhere has this line been
thinner than the one between "finders" and "solicitors" - the parties who
act as the middlemen in the investor...
Rhode Island has put 14 percent, or $1 billion, of its $7.5 billion in pension fund assets into a form of investment generally considered the exclusive province of sophisticated money managers and wealthy investors: hedge funds. The state is now short...
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...
Hedge funds were a key subject of debate during the passage of Dodd-Frank. While the funds were not tied to the causes of the market crisis, they do represent large pools of assets which can impact the market. Regulators frequently note that they have...
There are indications from Washington that hedge funds,
long exempt from anti-money laundering reporting rules, may soon be
brought into the fold under new rules proposed by the Treasury
Department's Financial Crimes Enforcement Network (FinCEN...
How much information should be provided to investors about the fund they have invested in? The answer to this question has evolved over time. In the past, limited information was provided on the theory that the manager always knew best and the trading...
Hedge funds usually give their limited partners an
ability to redeem their interests at certain periods during the investment
period. That ability is often subject to a "gates provision" that limits a
quick outflow of capital. The provision...
Once viewed as a luxury reserved for only the largest hedge funds, compliance technology has entered the mainstream. The complexity of reporting obligations, combined with the expanded number of hedge fund investment advisers that are now registered with...
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...
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 impact of the October 1 shutdown of the federal government on hedge funds is now playing out in slow motion. While the SEC remains open due to its ability to self-fund for a few weeks, its sister agency, the CFTC has shut down. These are the agencies...
I don't own any Apple stock, but their announcement about
what they're planning to do with their big stockpile of cash caught my
attention. Not because I'm going to rush out and buy the stock, but because of
My analysis of...