Have you covered the basics?
Although somewhat dependent on your investors base, have you chosen your Fund’s legal structure?
• Domestic partnership (managing assets for U.S. tax paying individuals and entities)
• Offshore Fund (managing assets of foreign persons or entities and/or no U.S. tax payers)
• Side-by-Side (allowing investors residing in the U.S. and investors residing offshore to invest indirectly in different entities with the same strategy)
• Master Feeder (allowing investors residing in the U.S. and investors residing offshore to invest indirectly in the same offshore entity or master fund) Have you identified your technology and operational needs? • Trading and market access (types of investment vehicles, foreign and/or domestic markets); • Reporting, processing and communicating not only as a hedge fund, but as a operating business.
Have you documented your investment strategy, investment process and risk management procedure?
• Managing risk and generating returns is why fund managers are paid. Can you demonstrate your process to potential investors? • Securities Act of 1933, as amended • Securities Exchange Act of 1934 as amended • Investment Company Act of 1940 • Investment Advisers Act of 1940 • Legal Structure • Technology Infrastructure • Operational Infrastructure • Investment Strategy • Investment Process • Risk Management • Regulation • Service Providers • Marketing
Who will be your key service providers?
• *Hedge Fund Advocate a firm providing ease to the business development side by:
a) providing referral to TOP investment professionals
b) recommending customized technology solutions
c) access to investors for capital raising as well manage investor relations and communication efforts
d) legal counsel for both domestic and offshore formations.
• Prime Broker • Fund Administrator • Legal Counsel (domestic and offshore, if applicable) • Audit and Tax • Execution services; market access • Securities lending; leverage • Trading back office operations • Portfolio and multi-prime reporting • Access to research • Soft dollar payment program • Financial statements and reports • Management fee and incentive calculations • Investor allocations • Subscriptions and redemptions • Performance and investor reporting • Audit and tax support • Fund Structure • Confidential offering memorandum • Partnership agreements • Subscription documents • Blue-sky filings • Regulatory requirements • Annual financial audit • Tax returns and related filings • Partner tax allocations • Investor K-1’s A Hedge Fund is a private investment vehicle. As such, are you familiar with registration exemptions, and applicable regulations?
* Hedge Fund Advocates bridge the gap between hedge funds, industry activities including latest moves, trends and outlook. A strong advocate group will not only save you time and money but can greatly contribute to your alpha generation by keeping you informed and well connected.
Tyler Capital Group was the first official hedge fund advocate group and consists of former hedge fund professionals coming from Operations, Investor Relations, Business Development, and Legal Counsel for some of the largest global asset managers.Tyler Capital Group, LLC 20W 22nd Street Ste. 709 New York NY 10010 T. 212.401.0913 E: email@example.com www.tylercap.com