Fri, Sep 30, 2016
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. Hedge funds recover from losses as central banks give markets a respite[more]

    Komfie Manalo, Opalesque Asia: The Lyxor Hedge Fund index was up 0.4% from the week ending September 20 (-2.4% YTD), supported by the willingness of central banks to remain accommodative, Lyxor Asset Management said in its weekly briefing. It ad

  2. Perry Capital closing flagship fund after almost three decades[more]

    From Blooomberg.com: Richard Perry, one of the biggest names in hedge funds, is calling it quits after 28 years. Perry, 61, is winding down his New York-based flagship fund as the industry confronts one of the most tumultuous periods in its history. In a letter to investors Monday, he said his style

  3. Eden Rock buys Gottex stake in ERG Asset Management[more]

    Matthias Knab, Opalesque: Eden Rock Group announced the purchase of Gottex’s stake in ERG Asset Management and so the firm is now wholly owned by Eden Rock. The two firms established the joint venture in 2011 to focus on providing cost effective solutions to funds holding illiquid investments, as

  4. "Hedge fund industry needs to shrink"[more]

    Komfie Manalo, Opalesque Asia: Writing for CNBC, Josh Brown, creator of The Reformed Broker blog and financial advisor for Ritholtz We

  5. Strategy - Voyager Management wants to invest in smaller hedge funds[more]

    From Valuewalk.com: Voyager Management, a $475 million fund of funds, is looking to downsize the hedge fund’s in which they invest, looking for smaller funds with assets under management that enable the fund to be nimble. The fund is looking for noncorrelation and will consider long / short equity