subject: A unique approach to hedge fund: Get maximum returns by risk management [print this page] A unique approach to hedge fund: Get maximum returns by risk management
Financial Risk management is often viewed as something that sits outside the investment progression and acts as a buffer on returns. Though, the early imminent into hedge funds over I5 years ago was that the contrary was true. An experienced hedge fund manager tends to engender their returns through their risk management methods, and these are central to their ability to deliver Alpha (excess returns).
Risk managers' ability to the hedge positions and their levels of experience enables them to participate in market benefit thus far limit participation in market negative aspect. When selecting risk managers, the value of their risk processes is an important factor.
Every hedge fund investment company just looks for superior risk management skills in their managers, and they should apply the same viewpoint in hedge fund investing.
Usually a Hedge Fund Investment Company recognizes that individual managers bring explicit and unique risks, which are the most important barrier to their portfolios achieving their objectives on behalf of investors. Well there are three types of risks usually a financial risk manager focuses on: Operational Risk, Investment Risk, and Liquidity Risk.
Now when a hedge fund attorney comes into the picture?
A hedge fund attorney is the primary service provider who can assist the managers to do his or her job properly. In New York, a hedge fund attorney will listen to the financial risk manager and talk about the investment program to protect investors. From here the New York hedge fund attorney will commence drafting the hedge funds contributory documents and may also recommend the other hedge fund service providers the manager should talk to (including the auditor, securities administrator, and hedge fund brokers or prime brokers). When the documents are finalized, the hedge fund lawyer will help the risk manager or the financial advisor with many of the logistical items and various legal process, which must be addressed before the fund starts making business.
Once the funds stats trading the hedge fund attorney must look upon some factors like:
Blue sky filings
Revising the offering documents if required
Drafting side letters contract for certain investors
According to the investors requirement, conversing with the manager when to state a new fund
Review marketing and answering any other hedge fund related questions
With the exception of drafting "offering documents" for a client, a hedge fund attorney also must have Industry Knowledge.
If you are looking for a New York based reputed lawyer, please visit New York Attorney Directory to get the required information.
