New York partner Kay Gordon was quoted in a HFMWeek article titled, “U.S. Launch Tips: Advice for Getting Started.”
Despite a healthy number of U.S. fund launches already in 2015, many acknowledge that the regulatory burden has intensified for domestic managers looking to launch funds. This has been brought about in part by the Dodd-Frank Act of 2010, among other changes, and the complementary introduction of Form PF following.
Meanwhile, a recent focus on cyber-security has added fresh considerations for managers at the fund launch stage, with U.S. regulators beginning to prioritize the issue. For hedge fund managers contemplating a launch, one of the most significant changes in Dodd-Frank has been the removal of an exemption with the SEC in March 2012, which led to a mass wave of registrations from the industry by the following winter. In turn, hedge fund managers have had to respond by upping their compliance infrastructure ahead of launching a fund, instead of building it up as the fund grows.
“At the manager level, funds must decide whether to only focus on investing in securities or invest in both securities and derivatives/futures,” said Kay.
HFMWeek is a UK -based publication that reports on current global hedge fund news.
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