In an effort to curb shorting abuses, the SEC has pried open the window on hedge fund transparency just a tiny crack. With the requirement to report short positions on a Form SH on a weekly basis applicable to certain investment advisers, investors (as well as the public generally) now have a way to know [...]
Although the rules may have changed between the time of this writing and the time you read it 20 minutes later, we thought it would be useful to post a list of new rules and regulations hedge fund compliance professionals will need to manage going forward. 1. Ban on Short Selling: Lists of banned stocks for [...]
CNBC Video \”Bad Year for Hedge Funds\” Today’s news featured some dire headlines and statistics about the health of hedge funds: performance down/fees slashed/struggling fund groups. HFR reports that the average fund lost 4.8% so far this year, and there has therefore been a reduction by many groups in both the management and incentive fees [...]
As a compliance matter, hedge fund managers of multiple accounts may face no greater challenge than to avoid favoring some accounts over others, aka: “cherry-picking”. A lop-sided allocation of investments by a hedge fund manager may be a breach his or her fiduciary duty to clients. Some examples of “cherry-picking” are: -favoring a fund that [...]
