howdo hedge funds and others get around nondisclosure

Discussion in 'Trading' started by qwert, Apr 9, 2009.

  1. qwert


    when hedge funds and short funds dont disclose their trading to the public , what is the specific term for this and where do you find info on the web about the legal definition of what theyre doing.
  2. rockywang


    I am able to reply
  3. there is no legal definition- its just not required to show your short positions in 13F filings.
  4. Reg D, Private Placements?

  5. I am not sure but I think because the hedge fund is registered a (private placement) this exempts from disclosure. It is for rich investors ($5million net worth?) and not allowed to market or offered to the public.
  6. NYC212


    accredited investors. not sure on the newest figures, but I believe $200k for single income or $300k for married. or someone with $1,000,000 in assets is considered an "accredited investor"

    quick q:

    assume Im a member of an exchange via a prof trader, could someone like this invest in a hedge fund or is the line in the sand being an accredited investor?

  7. I am not sure, and just a new person (not a wealthy person :) )
    From what I see how private hedge funds are, maybe just who you know, and the rule can change?
    The op ask about why no disclosure, and I think that is because it is how the fund registers (private placement) so this mean the people in the (private) hedge fund have to do their own due dilligence. But I am not someone with expert information.
  8. Usually hedge funds (at least those in Canada) have specific rules about businesses or firms that set themselves to invest in funds if individually they do not meet the criteria of being a specific high net worth...
    #10     Apr 9, 2009