Banking and Finance

Recent Posts

SEC Stepping Up Fund Enforcement Actions
Posted on 16 Dec 2011 by Asher Bearman

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... Read More

Insider Trading at Hedge Funds: A Risk Area that is Difficult to Address
Posted on 24 Jan 2012 by Judith Gross

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... Read More

Soros Doesn’t Want Your Money
Posted on 28 Jul 2011 by Doug Cornelius

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. Why? "We have relied until now... Read More

'Finding' Hedge Fund Investors Just Got A Bit More Difficult
Posted on 21 Mar 2013 by Judith Gross

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... Read More

Rhode Island Bets Big on Hedge Funds
Posted on 12 Aug 2013 by State Net

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... Read More

Perils of Side Letters for Hedge Fund Managers and Investors
Posted on 16 Dec 2011 by Judith Gross

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... Read More

Dodd–Frank Wall Street Reform and Consumer Protection Act Regulation of Hedge Funds
Posted on 2 Sep 2010 by Thomas O. Gorman

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... Read More

Hedge Funds And Money Laundering
Posted on 21 May 2013 by Judith Gross

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... Read More

Transparency Issues at Hedge Funds Continue
Posted on 15 Apr 2015 by Judith Gross

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... Read More

Limiting Redemptions by Limited Partners
Posted on 1 Sep 2011 by Doug Cornelius

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... Read More

Compliance Technology Now a Necessity for Hedge Funds
Posted on 30 Jul 2013 by Judith Gross

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... Read More

Is Your Hedge Fund Style "Drifting"? Quick, Catch It!
Posted on 13 Jul 2012 by Judith Gross

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... Read More

For Hedge Fund Investors in the Know, New Regulations May Provide Enhanced Transparency
Posted on 2 Nov 2011 by Judith Gross

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... Read More

Government Shutdown Impact on Hedge Funds
Posted on 8 Oct 2013 by Judith Gross

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... Read More

Is Apple a Hedge Fund?
Posted on 26 Mar 2012 by Doug Cornelius

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 Dodd-Frank. My analysis of... Read More