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Hedge Fund Management
Some Decisions: The Hedge Fund legal structure, roles and responsibilities The Service Providers The Hedge Fund Accounting Marketing Capital Raising Back Office Systems and Software The Launch Disclosure / Risk Disclosure Reporting Every decision is important. For example, what should you disclose? If you disclose more, they may copy you. If you disclose less, they will not invest (if you are not named Soros or Paulson). High net worth clients require year after year more regular and more detailed updates on performance. Hedge Fund Managers work with... A. Prime brokers - offer brokerage and professional services to hedge funds. Although Hedge Fund Managers love good prime brokers, they use more than one. Morgan Stanley, Goldman Sachs and Bear Stearns (which was acquired by JP Morgan Chase in 2008) are the largest prime brokers. B. Fund administrators - for the administrative functions. Some hedge funds outsource certain functions (like accounting, investor services, risk analysis) to third party administrators. C. Custodians - assets are held with a custodian, including cash and securities. Custodians may control flow of capital to meet margin calls. D. Auditors - Some hedge funds need to have their financial statements audited. Offshore locations (like the Cayman Islands and Bahamas) require hedge funds to have their accounts audited. ------------------------------------------------------------------------------------------------------------- |
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