Hannah Terhune Articles

After your Hedge Fund is Launched After your hedge fund is launched, consider how you are going to handle your hedge fund’s administration. We can handle the preparation of your fund level accounting and annual income tax return filings with Schedule K-1s for a low fee. Our work product includes detailed NAVs, performance records, brokerage statement reconciliation, and much more. Why not focus on what you do best and trade? Our hedge fund administration are offered ala carte, so you can choose what works for you. We offer monthly basis NAVs, performance records, brokerage statement reconciliation, advisory fee billing, etc. Call Hannah Terhune, veteran hedge fund attorney at (307) 213-4732 or email her if you want to discuss these services. Let our staff become your hedge fund’s account staff.

Hedge Fund Administration & Audits Investors and regulators see value in the appointment of a third-party administrator. Any investor looking at a hedge fund has to ask the question: how do I know I’m not going to get ripped off? When attempting to answer this question, most investors often focus exclusively on front-office issues such as a hedge fund’s track record, investment team and strategy. They then get blindsided by mundane back-office issues, such as finding out the hard way there was only one person signing off on wire transfers, or that a fund didn’t have a proper administrator. The back office is the guts of the enterprise. For More Information Click Here

We can handle the preparation of your hedge fund’s accounting and annual income tax return filings with Schedule K-1s for a low fee. Our work product includes detailed NAVs, performance records, brokerage statement reconciliation, and much more. One benefit of being a trader in securities is the ability to elect the Mark-to-Market (MTM) method of accounting. The tax election is available to an active trader and not to an investor in securities. The election is available for individuals and entities that file U.S. tax returns. A person or entity trading mainly in 1256 contracts typically would not want to make the MTM election because that person would lose the 60% long-term capital gain treatment available for futures trading subject to the 1256/commodities tax rules. Call Hannah Terhune, veteran hedge fund attorney at (307) 213-4732 or email her if you want to discuss these services. Let our staff become your hedge fund’s account staff.

CPA Prepared Hedge Fund Tax Ret ur ns Using us means there is no additional work at tax time. We provide complete Federal and all applicable State tax returns for the Fund including detailed supporting schedules and Partner/Investor K-1s. Tax planning services are also available. We provide tax lot matching for detailed Schedule D reporting. Contact Us for Help

Keep Fund Accounting Simple The hedge fund manager who has a highly complex performance allocation and expects the financials and tax returns by March 1 is tempting fate. The manager must recall that once the investor is promised something, less cannot be given. At the very least, no manager wants to go back to investors and ask them to sign amended fund documents about how the manager’s own cut of the profits is determined.

Hedge Fund Administrative Support? Many traders are accustomed to being a one-person business—trading from their home office. They are interested in trading for others to leverage their knowledge and make more money but they don’t want to change how they work. They don’t want to spend their days with attorneys, accountants, consultants and deal with business administrative hassles. While a hedge fund manager may feel that he can perform all of a funds tasks in-house, recent hedge fund scandals demand and new governance practices require the segregation of duties. In the event of a failure to implement these measures, investors may not invest in a particular fund. Our sister company Capital Services Group, LLC provides a full range of these services. Our virtual Web-based and e-commerce solutions take the hassle out of your trading, investment management and fund business. Our clients work from home, without any of the above-mentioned hassles. Most of our clients use our hedge fund accounting services on a monthly basis; others choose weekly, quarterly, annually or whenever they like. The work product includes NAV, performance records, brokerage statement reconciliation, advisory fee billing, performance allocation, investor changes, and other related reports.

Hedge Fund Audits There are two types of audits a hedge fund manager should consider: a full financial statement audit or a custody audit. The custody audit is less expensive than a full financial statement audit and makes more sense for smaller hedge funds. You may wonder what the difference is between the two types of audits? A full blown, full financial statement audit generally consists of procedures on an entities balance sheet, income statement, partners capital balances, and footnotes under Generally Accepted Accounting Principles (GAAP) at year end. The auditor will opine on the above listed statements and attach that auditor’s opinion to them. This is the norm when you look the annual reports of public companies. A custody audit consists of limited procedures usually limited to confirming cash and investments balances held at custodian broker dealers and banks or investment securities the hedge fund may hold outside of them (i.e, PIPE stock or other private equity that a fund may have in the General Partner’s safe). These amounts are then agreed to as the fund’s balance sheet amounts on the fund’s books and records A one or two page report is issued stating what was performed. No financial statements issued.

If the fund’s manager and located in a state where a surprise audit is required, these procedures are also performed at whatever date during the year the auditor during the year. the custody audit satisfies state custody requirements of registered investment advisers have that do not have a financial statement audit performed for the fund. Need help? Contact Us