From the monthly archives:

December 2008

Starting a Hedge Fund – Primer for Start Up Hedge Fund Managers

December 29, 2008

How to Start a Hedge Fund
Many future hedge fund managers have misconceptions about how to start a hedge fund – either they think it is a very basic process that takes no time or resources, or they think that it will take too much time and will be cost prohibitive.  For most start up hedge [...]

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SEC Hedge Fund Registration Exemption – Section 203(b)(3) and Rule 203(b)(3)-1

December 19, 2008

Exemption from the Registration Provisions of the Investment Advisors Act
We have discussed the SEC hedge fund registration exemption many times before, but we have not addressed it directly.For most management companies with a single hedge fund client, registration is actually a relatively easy and straightforward process.  Once hedge fund managers are registered as investment advisors [...]

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NFA Interpretive Notices on Advertising Practices - Applicable to NFA Forex Members

December 19, 2008

Earlier we discussed a release by the NFA in which they expressed the desire to apply the NFA Compliance Rule 2-29 to current NFA Members who are involved in the off-exchange forex markets (see NFA Proposes Rule 2-29 Apply to Forex Members).  We believe that the CFTC will approve the NFA’s request and thus certain [...]

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Obama Names Future Financial Market Regulators

December 19, 2008

President-elect Brarack Obama’s choices for the head of the SEC and the CFTC have been generally well-received.  Mary Schapiro and Gary Gensler have very large jobs ahead of them as Congress is expected to require hedge fund registration with the SEC, and the CFTC also has the mandate to regulate the off-exchange forex markets.  As [...]

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Illinois Hedge Fund Law – Various Laws and Regulations

December 19, 2008

Perhaps not surprising, Illinois has a very well developed Securities Division website which provides its investment advisors (and potential investment advisors) with many informative articles.  In this article we have reprinted three separate resources which we found helpful for potential hedge fund managers located in Illinois.
The first resource provides a basic overview of investment advisors [...]

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Offshore Hedge Funds – Side by Side Hedge Fund Structure

December 18, 2008

Offshore hedge funds can be structured in a number of different ways including a stand alone structure, a master-feeder structure and a side by side structure.  This article discusses the side by side hedge fund structure and also provides a side by side offshore hedge fund organizational chart.  As we have noted earlier in an [...]

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New Jersey Hedge Fund Law – Investment Advisor Registration Exemption

December 18, 2008

New Jersey Hedge Fund Managers Generally Exempt From Registration
Hedge fund managers in New Jersey generally do not need to register as investment advisors with the New Jersey Bureau of Securities.  New Jersey actually has a de minimis rule which provides that managers, with a place of business in New Jersey, do not need to register [...]

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South Carolina Hedge Fund Law – Investment Advisor Registration and Form D Filings

December 18, 2008

Below we have provided two separate sources from the South Carolina Securities Division Website.  First, we have reproduced a very short blurb from their website which explains that investment advisors who have a place of business in South Carolina must generally be registered as an investment advisor.  Second, we have reproduced their schedule and instructions [...]

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Georgia Hedge Fund Law – Investment Advisor Registration Exemption

December 18, 2008

Georgia Hedge Fund Managers Generally Exempt From Registration
Below we have provided two separate sources from Georgia’s Securities Division Website.  First, we have reproduced their frequently asked questions on investment advisor registration.  Specifically it should be noted that Geogia based hedge fund managers do not generally need to register as investment advisors with the state of [...]

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Offshore Hedge Fund Formation Overview – Hedge Fund Timeline

December 18, 2008

There are many reasons why managers will want to form hedge funds in offshore jurisdictions like the Cayman Islands or the British Virgin Islands.  While a domestic hedge fund can be established in as little as two to three weeks (depending on whether the manager must be registered as an investment advisor), the offshore hedge [...]

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