From the monthly archives:

August 2008

Offshore hedge fund director requirements

August 30, 2008

Two of the most popular offshore hedge fund jurisdictions are the Cayman Islands and the British Virgin Islands. In another post I will detail the requirements for registration or recognition with these jurisdictions, but for the purposes of this article it is enough to point out that both jurisdictions will generaly require each hedge [...]

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SEC files complaint against forex fraud

August 29, 2008

Summary:
Last Wednesday the SEC filed a complaint against a forex hedge fund manager who was supposedly using a “trading robot” to generate huge returns. It turns out the forex hedge fund manager and the trading robot did not generate the outsized returns, but instead lost investor money. There are two very important items [...]

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Hedge fund author fined $100k by the SEC for fraudulent hedge fund

August 28, 2008

Summary:
Mark J.P. Boucher, the author of the book The Hedge Fund Edge, was involved in a hedge fund scam where he lured investors into a real-estate hedge fund which was was supposed to be secured by real property. The fund was not and investors lost millions of dollars. This underscores the necessity for [...]

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MFA hires new lobbyist

August 28, 2008

MANAGED FUNDS ASSOCIATION HIRES ROGER M. HOLLINGSWORTH AS EXECUTIVE VICE PRESIDENT AND
MANAGING DIRECTOR, GOVERNMENT RELATIONS
WASHINGTON, D.C., August 26, 2008 — Managed Funds Association (MFA), the
leading trade association of the hedge fund industry, announced today that Roger Hollingsworth has been named executive vice president and managing director, government relations, effective September 8, 2008. He will be [...]

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How to grow your hedge fund

August 28, 2008

There are several effective ways to grow your hedge fund. Many of those methods will be discussed and evaluated here. Obviously superior performance among investors with comparable risk is a great way to grow your fund. This section will delve into how investment teams can derive the superior performance that all funds strive for.
Character of [...]

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CTA registration requirement and exemption

August 26, 2008

Question: does my commodity/futures trading firm need to register as a CTA?
Answer: Generally Section 6m(1) of the Commodities Exchange Act (“CEA”) requires that any person (or firm) which falls within the definition of a CTA be registered as such. Section 6m(1) of the CEA states:
“It shall be unlawful for any commodity trading advisor [...]

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SEC fines adviser and revokes registration

August 26, 2008

The SEC fined an investment adviser and revoked its registration because of willful refusal to follow simple investment adviser rules such as updating form ADV and submitting to a reasonable examination of its books and records.
From SEC website:
Commission Declares Decision as to Amaroq Asset Management, LLC and Dwight Andre Sean O’Neal Jones Final
The decision of [...]

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What licenses do you need to start or manage a hedge fund?

August 24, 2008

Question: What licenses do you need to start or manage a hedge fund?
Answer: This is a question that comes up quite often. Many people wonder whether they need a series 7 license or the series 65 license or the series 3 to manage a hedge fund. First, a potential hedge fund manager does [...]

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India Embraces Private Equity Funds

August 22, 2008

The following is a press release from the international law firm Walkers discussing private equity funds in India.  The release can be found here.
India Embraces Private Equity
21-Aug-2008
Walkers, the global offshore law firm of choice for companies, financial organizations, and international law firms reports that private equity has emerged as a popular financing option in India [...]

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CFTC order levies major fine on hedge fund trader

August 21, 2008

Summary:
The CFTC ordered a hedge fund manager who operated four commodity pools to pay more than $279 mm in restitution to prior hedge fund investors as well a $20 mm civil penalty for his fraud. The manager concealed huge losses from investors by issuing false account statements which reflected consistently profitable trades. The [...]

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