Sun, Nov 29, 2015
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

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. Other Voices: Hedge fund marketing and the selling cycle[more]

    By Bruce Frumerman. How long is the selling cycle now? That’s a question my financial communications and sales marketing consulting firm has been asked on a regular basis by hedge fund firm owners and sales people, ever since we opened the doors to our firm in 1987 pre-crash. Wa

  2. People - Solus Alternative Asset Management adds chief strategist from BTIG[more]

    From Daniel Greenhaus joined hedge fund manager Solus Alternative Asset Management as managing director and chief strategist. He will work closely with Chris Bondy, Solus’ chief economist, managing director and executive vice president, said Chris Pucillo, CEO and chief investmen

  3. Opalesque Roundtable: Seeding deal terms can be onerous for hedge funds[more]

    Benedicte Gravrand, Opalesque Geneva for New Managers: Executives from fund of funds firms, family offices, a placement agent, a private equity firm, and an accounting firm gathered in Connecticut last month for the

  4. Opalesque Roundtable: Family offices flock to co-investment[more]

    Bailey McCann, Opalesque New York: Co-investments have been a hot topic for pension funds in recent years, as they try to move away from high fees and improve transparency. But now, family offices are more readily getting into the mix and establishing in-house deal teams, according to the delega

  5. More institutional investors invest in CTAs compared to last year despite dissatisfaction with performance[more]

    Benedicte Gravrand, Opalesque Geneva: "Despite a strong start to 2015 for CTAs in Q1, commodity market conditions have made return generation difficult for fund managers over much of the rest of the year to date," says Preqin’s November