Fri, Apr 20, 2018
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. Investing - Sequoia takes Facebook stake as shares slide in data controversy, $1.4b hedge fund sees intact fundamentals for Facebook, Jim Cramer reveals some 'suggested hedge fund trades' amid the Trump tariffs[more]

    Sequoia takes Facebook stake as shares slide in data controversy From Bloomberg.com: The $4.2 billion Sequoia Fund bought a small position in Facebook Inc. as the stock slid late in the first quarter, investment manager Ruane, Cunniff & Goldfarb told clients. "The recent controversy enab

  2. Activist Investors - Blue Sky-owned Wild Breads faces uncertain future[more]

    From AFR.com: A Blue Sky private equity investment in artisan-style baker Wild Breads enjoyed multiple valuation upgrades despite losing millions and breaching its lending covenants, accounts lodged with the regulator last week show. Wild Breads lost $2.4 million in 2017, but Blue Sky ascribed a hig

  3. Opalesque Exclusive: Barnegat to close hedge fund to outside investors on weak opportunities[more]

    Komfie Manalo, Opalesque Asia: Bob Treue's Barnegat Fund Management said it is closing its $666m fixed income relative value hedge fund to outside investors. "The negative side to gains in Fixed Income Arbitrage is that unless we find new opportunit

  4. Investing - Hedge fund makes a big bet on malls, British hedge fund manager Odey short UK government bonds on QE bet[more]

    Hedge fund makes a big bet on malls From Barrons.com: The dominant narrative on American shopping malls is that they're dead. Crushed by Amazon.com, many brick-and-mortar retail stores are destined for bankruptcy. And where is the most retail, clustered all together? Malls. From a

  5. Performance - Hedge funds suffer first back-to-back loss in two years, Netflix performance burns hedge fund short sellers, Macro hedge fund up 14.5% in first quarter sees dollar falling, Renaissance Technologies rebounds across hedge funds in March[more]

    Hedge funds suffer first back-to-back loss in two years From Bloomberg.com: Hedge Fund returns sank for a second straight month in March, the first back-to-back loss since the first two months of 2016, as trade wars, tech-sector woes and a Fed rate hike dragged down the S&P 500 from its