“Dark Pools” are alternative liquidity pools that have been developed by broker/dealers to match buyers and sellers in non-public exchange transactions. The growth of these pools has increased exponentially recently — as much as 95% between 2004 – 2007, according to the Security Traders Association’s Special Report released on April 30, 2008. www.securitytraders.org These pools [...]
Considering an offshore exchange listing for your hedge fund? Hoping it will increase your investor base? Before you go ahead, keep in mind that many offshore exchanges have requirements that may increase your administrative burden. These may include: -preparation of semi-annual financials; -on-going reporting requirement regarding material changes in the fund structure or operation; -director’s [...]
In light of the spate of recent spectacular falls of hedge fund managers and subsequent resurrections, we ask an interesting question from a compliance point of view: which track record, if any, do these managers point to when raising new assets? The portability of track records has always been a hot topic in the compliance [...]
According to the 6th Annual Deutsche Bank Alternative Investor Survey, “Risk Management” now ranks as one of the top 3 concerns of hedge fund investors. Risk management never before had ranked so high in the survey, so it is an important development to note. “Performance” and “Pedigree” are the other two top concerns. Deutsche Bank [...]
As more hedge fund groups are subsumed into larger organizations, or just get larger and more diversified on their own, we see an increasing problem with internal organizational conflicts of interest. A perfect example is the news of a fine against Soc Gen by a French regulator for failure to manage risks between the investment [...]
Several weeks ago, the PWG released its long-awaited draft report on hedge funds! It contained two committee reports, one for asset managers, one for investors. Focusing in on the asset managers report, we find that it provides best practices for both policies and procedures in 5 broad areas: Disclosure and Investor Protection Valuation Risk Management [...]
Over $8 million has been given to presidential candidates so far during this election season by hedge fund and private equity employees, according to data from the Center for Responsive Politics. (59/41, Dem/Rep by the way.) Compliance specialists need to consider how these contributions should be integrated into their compliance policies and procedures. Can you [...]
Compliance issues related to marketing materials fall into areas: —you need to know the rules around what you can say — and– —you need to know the rules around how you can say it. The “what” is a topic for another day, and there is certainly a lot of noise in that area [...]
