EDUCATION CENTER
TRADER LINKS: HEDGE FUNDS

Money Management (hedge funds and more)

HedgeWorld
www.hedgeworld.com
Community, commerce and content for the global alternative investment industry.

Hedge Fund Association
www.thehfa.org
The Hedge Fund Association is an international not-for-profit association of hedge fund managers, service providers and investors formed to unite the hedge fund industry and add to the increasing awareness of the opportunities in hedge funds.

HedgeFund.net
www.hedgefund.net
HedgeFund.net is a free listing of hedge fund information and performance that currently encompasses 31 different strategies. Our growing membership includes more 2,600 of the world's most talented hedge fund managers and more than 26,000 sophisticated investors.

Hedge Funds Consistency Index
www.hedgefund-index.com
Newsletter ranks and profiles on a risk-adjusted basis the most consistently performing hedge funds.

Managed Funds Association
www.mfainfo.org
MFA is the global voice for the alternative investment industry, representing a diverse group of members, including hedge funds, funds of funds, futures funds, CTA and CPO professionals, as well as the service providers who support the hedge fund industry.

Van Hedge Fund Advisors International
www.hedgefund.com
Qualified investors now have access to one of the world’s largest selections of hedge funds with Van Hedge Fund Advisors International, Inc. (VAN). This extensive hedge fund information is maintained in data banks which contain information on more than 4,100 hedge funds.

The below links are part of our Hedge Fund Resource section.

Investment Advisors Act of 1940
The full text of the Act is accessible from the above link. The SEC administers this area of the law. If you choose (or are required) to become a SEC-registered Investment Advisor, this is the law that affects you. There are federal exemptions from registration as an Investment Advisor, but they are narrow, and you must be careful to ensure that you follow the rules. Because of the unique structure of our state and federal legislation system, your state’s rules may take precedence over the SEC rules. There are a number of rules that have been issued by the SEC related to the implementation of the Act. You can read those rules here: www.access.gpo.gov/nara/cfr/waisidx_00/17cfr275_00.html.

Investment Company Act of 1940
If you end up with more than 100 investors in your fund, you will be subject to this Act. Similar to the Investment Advisors Act of 1940, the Investment Company Act of 1940 also has a number of rules associated with the Act. See those rules here: www.law.uc.edu/CCL/InvCoRls/index.html.

Securities Act of 1933
This is the Act that determines how you issue your hedge fund. Most of our clients sell their fund under a Rule 506 exemption under Regulation D of the Securities Act of 1933. The Act basically requires that potential investors receive financial and other data of significance on securities being offered for sale (which is technically what is done with a hedge fund vehicle), although there are exemptions.

Securities Act Rules
The link can take you to both the “General” rules of the ’33 Act as well as significant regulations, such as Regulation D. The minutia is significant, but all the rules under the Securities Act of 1933 are here!

USA Patriot Act of 2001/Bank Secrecy Act.
The implementation of the Patriot Act is still in process. However, there are going to be significant impacts on the hedge fund community when the rules are finalized. As it stands right now, there are going to be anti-money laundering rules, and you are going to be required to have an audit of your anti-money laundering compliance program. There will also be rules that will require all hedge fund managers to inform the SEC they are operating a hedge fund. At this point, there is no indication you are going to be required to provide your investors’ identity, but you will need to provide your name and contact information as well as the total amount of assets you have under management and the number of investors you have.

Commodity Futures Modernization Act (CFMA) of 2000
H.R. 5660 Dec 14, 2000. The most significant aspect of this legislation was the legal creation of the single-stock future contract and taxation of broad based indices.

Taxation under the CFMA of 2000
Technical Explainations of the Tax Provisions of CFMA. If you want to learn more about the taxation of commodities, this is an excellent resource.

Analysis of CFMA by GTT
A bevy of new products have hit the market in the last few years – ETFs, E-Minis, single-stock futures, new indices, and options and futures on almost everything. Learn how all these new products are taxed in accordance with CFMA, and why it matters to you.

Securities Exchange Act of 1934
This is the law that created the SEC. It provides the basis under which the SEC performs all of its activities. The SEC’s activities include being the primary regulator of the following activities: corporate reporting, proxy solicitations, tender offers, insider trading, and the registration of Exchanges and Associations.

SEC Release No. IA-2091
If you are operating your investment advisor (IA) firm via the Internet and dispensing advice via the Internet, this new rule will allow you to choose to register your IA with the SEC as opposed to being forced to only register with specific states. Previously, you were required to register with more than 30 states (if you had less than $25 million under management) before you could register with the SEC. This new rule could reduce your administrative burden.