Hedge Fund Management
The make decisions about:
-
The Hedge Fund legal structure, roles and responsibilities
-
The Service Providers
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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.
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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