Tue, Aug 22, 2017
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. Opalesque Exclusive: Albright Capital puts a value lens on emerging markets[more]

    Bailey McCann, Opalesque New York: Over the past decade, investors have steadily increased investments in emerging markets private funds. Allocations to the cohort have increased from $93 billion in December 2006 to $564 billion in September 2016, according to data from research firm Preqin. Howe

  2. Comment: "Long-Term Investing": What managing drawdown risk can do to your long-term returns[more]

    Matthias Knab, Opalesque: Real Investment Advice writes on Harvest Exchange: Last week, I was having lunch with a prospective portfolio management client discussing the curre

  3. Jasper Capital International joins Hedge Fund Standards Board[more]

    Komfie Manalo, Opalesque Asia: Diversified and systematic investment firm Jasper Capital International has become the second China-based signatory to the Hedge Fund Standards Board (HFSB), an organization that brings hedge fund managers and investors together to set standards for the hedge fund i

  4. Investing - Hedge-fund honchos including David Tepper are loading up on Alibaba, Billionaire hedge fund manager Stanley Druckenmiller is betting big on the Chinese consumer, Big-name U.S. hedge funds shed healthcare stocks during the rally in second-quarter, U.S. hedge funds bearish on FAANG stocks in second-quarter, Hedge fund titan Viking Global made a $680 million bet on scandal-plagued Wells Fargo[more]

    Hedge-fund honchos including David Tepper are loading up on Alibaba From CNBC.com: David Tepper's Appaloosa Management and three other he ge funds took new stakes in Chinese e-commerce giant Alibaba in the second quarter, according to the latest quarterly filings. Appaloosa disclos

  5. FinTech - Danger: Crowdfunding on the wrong platform could force you to go public[more]

    From LinkedIn.com: Some equity crowdfunding platforms are putting startups at serious risk. Working with a platform that doesn't structure your deal appropriately could jeopardize your ability to raise future capital or worse, force you to become a public reporting company. The emergence of eq