Hedge Fund Advisers Will Continue to Register Despite Court Decision to Strike Down SEC Rule
Copyright 2006 Stephen Furnari
Small, independent hedge funds were given a boost on Friday by a favorable court decision that struck down a controversial rule requiring hedge funds to register with the Securities and Exchange Commission.
Notwithstanding the decision, many fund advisers are expected to continue to register voluntarily in order to attract and retain institutional investors.
In 2004, the SEC amended one of the key exemptions fund advisers relied on to avoid registration with the SEC as an investment adviser. Previously, fund managers with fewer than 15 clients were not required to register as an investment adviser.
Under the old rule, each fund the adviser managed was considered a "client", regardless of the number of individual investors in the fund.
In most cases, managers that advised fewer than 15 funds could avoid registration as an investment adviser.
Under the 2004 rule amendment, the SEC changed the definition of a "client" of an investment adviser to mean the individual investors in the funds it managed.
Thus, with few exceptions, the 2004 rule amendment forced fund advisers managing investment funds with 15 or more investors (and more than $30 million in assets) to register as an investment adviser.
Since the adoption of the 2004 rule amendment, 1,260 new fund advisers have registered with the SEC.
Last week's appeals court decision strikes down the 2004 rule amendment, which will relieve many smaller funds from the burden and expense of investment adviser registration, compliance and random SEC inspections.
This is a big development in U.S. hedge fund regulation, and a sign of a potential backlash against the SEC's attempt to expand its regulatory reach in this area.
However, no one expects the SEC to close the door completely on hedge fund regulation.
And while some advisers may elect to de-register to avoid the cost of compliance, many funds are expected to take a "wait-and-see" approach in anticipation the SEC's potential enactment of new rules in reaction to the court's decision.
Notwithstanding the court decision, many institutional investors appreciate the transparency that registration affords investors, and will continue to require registration as part of their investment criteria.
In the fund business, and especially for small, independent funds, institutional investors are the Holy Grail.
Accordingly, many advisers will continue to voluntarily register despite the burden of compliance.
While registration is a modest burden for advisers, there are ways for independent advisers to maintain their registration status without having compliance issues overwhelm their operations.
In my practice, we help advisers devise cost effective strategies to register and meet their ongoing compliance requirements.
We have found that the advisers who work with us are able devote minimal time to the annoyance of compliance and more time on what's really important: raising and managing capital.
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To schedule an appointment, email his assistant, Inga Eilenkrig, at ieilenkrig@furnarilevine.com, or go to http://www.furnarilevine.com .
Hedge Fund of Fund Performance in 2005
(ContentDesk) February 3, 2006 -- Contrary to the recent influx of negative press about the hedge fund industry, the Alternative Asset Center Fund of Hedge Funds Benchmark shows respectable cumulative returns for 2005 and the sectors second-highest annual performance return since 2000.The year brought returns of 7.53% for AACs equally-weighted average of 2,708 funds of hedge funds,* outperforming the S&P 500 Index by 2.61% and more than tripling the Lehman Bond Return of 2.43%.The AAC Benchmarks 7.53% return is more than a percentage point higher than its 2004 average (6.43%), and greater than the returns of 2001 and 2002 combined (5.25% and 1.89% respectively).Nine of the 12 months brought positive returns in for the Benchmark this year, and a second-half surge shows promise for 2006.While four of the first five months of 2005 saw miniscule or negative returns for the AAC Benchmark, funds of funds rallied for combined gains of 5.43% between June and September. The fund-of-fund sector...
Hedge Fund of Fund Performance in 2005
Hedge funds > Hedge Fund of Fund Performance in 2005
Hedge Connection Registers 100th Hedge Fund Member--New Service Helps Hedge Funds Meet Investors
New York, NY (ContentDesk) April 18, 2006 -- Hedge Connection Inc. ( Hedge Connection ), the first web-based investor introduction service, today announces that it has achieved an important milestone with the registration of its 100th hedge fund member.Lisa Vioni, the founder and President of Hedge Connection said, We are pleased to welcome our 100th hedge fund member to Hedge Connection. Hedge Connection is the only service available that provides hedge fund managers direct access to investors.
Our 500+ investor members and 100 hedge fund members are using our platform to source ideas and build relationships.
Hedge funds representing all strategies and sizes have joined recognizing the value of our service."Launched in October of 2005, Hedge Connection serves the needs of hedge funds looking to meet investors and qualified investors looking for hedge fund investments.
Hedge Funds pay a low annual membership fee to join Hedge Connection while qualified...
Hedge funds > Hedge Connection Registers 100th Hedge Fund Member--New Service Helps Hedge Funds Meet Investors
Risk Capital & Global Change Associates Announce Affiliation
Risk Capital and Global Change Associates announce an affiliation on energy risk, litigation support and hedge fund advisory services. Risk Capital, (formerly known as Risk Capital Management Partners), headed by David Shimko, is a recognized leader in market and credit risk. Global Change Associates is noted for its cutting edge insights and analyses into energy market & trading developments."GCA ?s reputation on energy markets and trading blends very well with Risk Capital's core expertise," said Risk Capital CEO David Shimko."The affiliation with Risk Capital gives GCA unprecedented resources and expertise in energy analytics, quantitative analysis, and energy contracting services," said GCA Chairman, Peter C. Fusaro.The firms, both based in New York, are targeting opportunities throughout North America in litigation support services in energy contracting, M & A due diligence, energy risk management and credit evaluation projects.Risk Capital advises clients on effective management...
Risk Capital & Global Change Associates Announce Affiliation
Hedge funds > Risk Capital & Global Change Associates Announce Affiliation
Introduction to Absolute Return Funds
Absolute Return Funds are internationally known as Hedge Funds.
Hedge Funds are often deemed high risk/high return investment products.
This is because they have gained notoriety for making rich investors, like George Soros, John Henry & others, very rich.
Hedge Funds use diverse investment strategies, so are typically deemed out-of-reach to the average investor.
In fact, Absolute Return Funds are deemed to have the same volatility of bonds but with a much higher rate of return.In this article you will discover:
- What is an Absolute Return Fund?
- How Absolute Return Funds play a part in your portfolio
Traditional investment funds tend to invest directly into stocks, which may go either up or down.
Absolute Return...
Hedge funds > Introduction to Absolute Return Funds
Wall Street Green Trading Summit Announced
New York (ContentDesk) January 12, 2006 -- The Wall Street Green Trading Summit has been announced for April 4 and 5 at Bloomberg headquarters in New York. The conference covers carbon trading, renewable energy trading and emissions trading. Conference producers Hedge Connection and Global Change Associates expect over 300 live attendees. The conference media partner this year is Bloomberg LP.This conference is the fifth in a series of green trading summits and is the only global conference to cover emissions, renewable energy, and megawatt (energy efficiency) trading. This triple convergence of markets was defined by green trading creator Peter Fusaro four years ago.
With carbon trading poised to grow globally into a $3 trillion global market in 20 years, there is more interest in green trading solutions to pollution than ever before.In a time of sustained high energy prices, clean technology is poised to accelerate market penetration, and in recognition of this trend, this years...
Wall Street Green Trading Summit Announced
Hedge funds > Wall Street Green Trading Summit Announced
New Mutual Fund Guide Targets Novice Investors
San Diego, CA (ContentDesk) March 1, 2006 -- In eight chapters, his Beginner's Guide to Top Low Cost Common Stock Mutual Funds (ISBN: 1-4116 6908-8) explains to first time investors how funds work, their tax aspects, guidelines about when to sell, and why a buy-and-hold strategy beats market timing.
In addition, he details for purchase 13 top low cost funds, including one that over three decades turned $10,000 into
$395,000.
"Making money in the stock market is a no brainer," he says, "if you just let our economy, a tremendous money-making machine, work for you.
And you can make it work for you by having patience and buying and holding for the long term proven quality funds." About the AuthorSteve Haberman practices what he preaches.
For over 30 years, through good and bad times, he's invested in no load funds.
Through his common sense approach, he's profited greatly and been able to travel extensively throughout Europe.
On...
Hedge funds > New Mutual Fund Guide Targets Novice Investors
Hedge funds
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