It is not uncommon for a hedge fund to have multiple managers who share the responsibilities of running the fund. Multiple managers may execute different strategies or may operate in different functions so that each can concentrate on their own specific skill set. Responsibilities should be divided carefully and a management agreement or the management company’s operating agreement should clearly outline what happens in situations of conflict. An operating agreement should be drafted by a licensed attorney who has experience in the investment management industry.
Can a hedge fund advertise on the Internet?
Historically, hedge funds have been prohibited from conducting any public offering by Rule 502(c) of Regulation D, which prohibited all forms of general solicitation and advertising. However, the JOBS Act…
Does a hedge fund need to register with any regulator?
Hedge fund managers are often regulated by the state in which the hedge fund manager conducts business or by the SEC, depending on the manager’s assets under management (known as…
What documents do I need to start a hedge fund?
Most hedge funds raise money through a private offering exemption under Regulation D of the Securities Act of 1933. Although Reg. D prohibits general advertising, fund managers do distribute certain…