Hedge Fund Accounting

Hedge funds are pooled investment vehicles for high net worth individuals (accredited investors), pension plans, foundations, other investment funds, etc.

Hedge funds invest in a diverse range of markets, investment instruments, and strategies. They are privately owned and operated but subject to the regulatory restrictions of their respective countries. The term “hedge fund” refers more to the structure of the investment vehicle, rather than the investing technique.

Hedge fund accounting is the process of: Capturing the activity of the fund The cash/due from broker cycle The trading cycle The capital/share transaction cycle The monthly NAV Cycle The year-end financial reporting cycle Reviewing the information for accuracy and completeness Approving daily, weekly, monthly reporting Reporting information to vested parties Investors Management Traders

Fund accounting is carried out by the controller and the accounting team of the fund.
Fund accounting is also performed by third-party service providers such as fund administrators. This course is designed to discuss the key aspects of fund accounting from the controller’s perspective while also taking into account the role of the administrator and the reporting requirements under the United States Generally Accepted Accounting Principles. References to the “fund accountant” throughout this course can relate to either the controller or the administrator.