The Top Two Securities Exemptions that Apply to Hedge Funds
Introduction The Securities Act of 1933 (the “Securities Act“) was passed in that year to remedy certain abuses relating to the sale of securities which manifested during the Great Depression. See 15 U.S.C. §§ 77a et seq. The Securities Act put in place a paradigm for the sale of “securities” that works to protect investors […]
Understanding High Water Marks in Hedge Funds
Introduction: In the intricate world of hedge funds, we encounter a concept known as the ‘high-water mark’ which relates to the GP’s compensation structure (e.g. often 2% management fee / 20% performance fee). A typical clause in a hedge fund limited partnership agreement relating to the high-water mark, will often be found in full in […]
What Are The Documents Required To Form a Simple Domestic Hedge Fund Structure?
As you may already know, hedge funds are investment vehicles that pool capital generally from accredited investors, in order to employ on that capital varying strategies upon securities aiming for positive returns. In this article, we answer the question above and delve into the fundamentals of a simple domestic hedge fund structure, shedding light on […]