Wed, May 4, 2016
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Alternative Market Briefing

Enhanced risk management and due diligence needed on hedge funds ad rule

Wednesday, July 31, 2013

amb
Kristoffer Houlihan
Komfie Manalo, Opalesque Asia:

This coming fall, expect hedge funds, private equity funds or early-stage companies to start pitching opportunities to buy into the once 'for elite-only’ portfolios as the Securities and Exchange Commission lifted the 80-year ban on advertising by private placement offerings.

But Kristoffer Houlihan, founder and Managing Partner at independent strategy and risk advisory company Armilla Partners, warns that the lifting of the long standing ad ban could trigger a risky, black box investment culture that takes undue advantage to gullible investors.

"The new rule could evoke more interest about hedge funds and more need for evaluation. We expect more request for information about hedge funds and other private placement offerings in the coming months. People will start asking questions," Houlihan said in an interview with Opalesque.

However, the new SEC rule did not change the restrictions on hedge funds. Houlihan noted that the same rule applies that private funds can sell their products to accredited investors with at least $1m in net worth, excluding their primary residence, and those who earned more than $200,000 annual over the past two years.

This could hurt entrepreneurs and small businesses that the JOBS Act intended to protect and promote by finding new ways to fund their businesses in the first place, Houlihan warns. Fund managers must establish the qualificat......................

To view our full article Click here

Today's Exclusives Today's Other Voices More Exclusives
Previous Opalesque Exclusives                                  
More Other Voices
Previous Other Voices                                               
Access Alternative Market Briefing


  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. Hedge funds see $14.3bn outflows in Q1, CTAs and multi-strategy lead net inflows[more]

    Komfie Manalo, Opalesque Asia: The hedge fund industry saw net outflows of investor capital in the first quarter of the year, totaling $14.3bn, data from Preqin showed. This continues from the $8.9bn overall net outflows that funds recorded in Q4

  2. Third Point calls Q1 "catastrophic" for hedge funds[more]

    Bailey McCann, Opalesque New York: The first quarter of this year was rocky for hedge funds based on aggregate performance from the industry, but now we are beginning to hear what the managers thought of it as quarterly letters make their way to investors. Dan Loeb, CEO of New York-based $17 bill

  3. Asia - Stabilization of China's capital outflows may hinge on Janet Yellen, Fink says China to do well this year as bubble threat postponed, Chinese hedge fund to invest in India’s infrastructure[more]

    Stabilization of China's capital outflows may hinge on Janet Yellen From Bloomberg.com: Whether China’s recent stabilization of its currency and capital outflows continues -- or downside pressure reignites -- may hinge in large part on Janet Yellen. If the Federal Reserve chair sticks to

  4. …And Finally - After all, judges are human too[more]

    From Newsoftheweird.com: In March, one District of Columbia government administrative law judge was charged with misdemeanor assault on another. Judge Sharon Goodie said she wanted to give Judge Joan Davenport some files, but Davenport, in her office, would not answer the door. Goodie said once the

  5. Comment - Unmasking the men behind Zero Hedge, Wall Street's renegade blog[more]

    From Bloomberg.com: Colin Lokey, also known as "Tyler Durden," is breaking the first rule of Fight Club: You do not talk about Fight Club. He’s also breaking the second rule of Fight Club. (See the first rule.) After more than a year writing for the financial website Zero Hedge under the n