Net asset value, or NAV for short: it’s a basic calculation which hundreds of mutual and other investment fund managers have to make each day to allow investors to know just how much they will pay to buy and sell shares or units. While the timetable for when the figure must be struck might differ, […]
Hedge Fund Accounting: Beyond a Shadow of a Doubt
With eagle-eyed institutional investors needing assurance of the accuracy of hedge funds’ operations, as well as their returns, keeping books and records is no easy one-shot deal. No matter who serves as the official fund administrator, back-up verification or “shadow accounting” has already become the modus operandi for the largest funds and is quickly taking hold among smaller ones. Over 75 percent of hedge […]
Middle Office Takes Center Stage in Hedge Fund Valuation Fiasco
A recent fine of US$9 million the US Securities and Exchange Commission levied against a UK hedge fund advisor and its former US holding company shows the operational risk faced by alternative investment funds when middle-office controls fail to correctly handle the signs of a bad valuation. The settlement, announced on December 9, 2013 arose […]