Sun, Feb 18, 2018
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Alternative Market Briefing

Hedge funds get more traditional as investors demand institutionalization

Thursday, October 03, 2013

amb
Ron Geffner
Bailey McCann, Opalesque New York:

Hedge fund managers, attorneys, and auditors are convening at the Alternative Assets Summit in Las Vegas, Nevada to discuss the latest trends and changes to the industry. Speakers have offered up a variety of viewpoints on investments and the economy, but most notably many are also talking about more traditional issues like mutual fund structures, and employment agreements.

"I'm not saying a handshake is a bad way to work, but when someone asks for an employment agreement in the diligence process and you don't have one, that's going to be a flag," said Ron Geffner an attorney with Sadis Goldberg, in a morning panel about institutionalization. He notes that the era of building a hedge fund staff from friends brought in on a handshake is coming to an end as investors expect to see a more corporate approach to running the business. "At the end of the day, a hedge fund is still a business," he said.

Other sweetheart deals common to marketing and capital raising may also raise red flags with investors and regulators. Fund managers that set up a capital raising arrangement with someone who doesn't have a Series 7 may find themselves running counter to the law. "I've never actually met a finder," Geffner said referring to the terminology in the regulation. "There may be that one off phone call from someone's aunt, but the person you're paying a bonus to is not a finder."

'40 Act funds get ch......................

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. Chenavari, a $5.4bn hedge fund, told investors it thinks 'we could experience a similar pattern as the 1987 crash'[more]

    From Businessinsider.com: A $5.4 billion hedge fund told clients markets could tumble just like they did in the 1987 crash. In a February 14 letter to clients, London-based Chenavari Investment Managers warned about current market conditions. From the letter (emphasis added): "Our view is that

  2. Active funds shone in selloff, just like they said they would[more]

    From Bloomberg.com: For years, it's been the same refrain. Don't bail on active management, you'll regret it when the market turns sour. And while the selloff that ripped through equities this month has been too short to prove anything, early returns suggest they had a point. Thanks to differentiate

  3. No place to hide: managed futures funds fall with stocks[more]

    From Barrons.com: Managed futures mutual funds haven't lived up to their billing of providing uncorrelated returns so far in 2018, continuing a disappointing multiyear stretch. The $10 billion AQR Managed Futures Strategy, the largest fund by a wide margin in the category, was down 2.75% year-to-dat

  4. Investing - Hedge fund Bridgewater makes $22 billion bet against European firms, Hedge funds Steadfast and Suvretta jump onto CSX in fourth quarter, Tepper's Appaloosa boosts Apple, Facebook as others bolt, Third Point buys Netflix and MGM, dumps Bank of America, Moore Capital bought Wynn Resorts, other casino stocks before Steve Wynn resigned[more]

    Hedge fund Bridgewater makes $22 billion bet against European firms From Reuters/USNews.com: Bridgewater has shown its hand in Europe with a $22 billion bet against some of the continent's biggest companies, filings reviewed by Reuters show, part of a bigger shift by the world's largest

  5. Funds Profiles - Brother-run hedge fund up 46% in 2017 says Kelly formula shows diversification is flawed, How a 6,000% profit on a single trade saved a small hedge fund from disaster[more]

    Brother-run hedge fund up 46% in 2017 says Kelly formula shows diversification is flawed From Valuewalk.com: When Jeremy and Michael Kahan consider the notion of diversification, the wince. With a return of 45.8% to end 2017, their stock-picking fund, North Peak Capital, successfully