Funds

Hedge Fund Replication ETFs: How They Work and Their Limits Explore how hedge fund replication ETFs use systematic strategies to mimic hedge fund returns while limiting costs and transparency constraints.

Hedge fund seeding The process of funding the launch of a new hedge fund, typically involving seed investors who provide initial capital in exchange for reduced fees and board representation.

Hedge Fund Separately Managed Account vs Commingled Fund Comparing SMAs and pooled hedge funds: structural differences, transparency, liquidity, fees, and tax treatment.

Hedge Fund Series Accounting Explained How hedge fund series accounting isolates investor subscriptions into separate tranches to track performance and charge fees on a per-investor basis.

Hedge Fund Side Pocket A segregated account holding illiquid or hard-to-value assets, shielding redeeming investors from forced sales of troubled positions.

Hedge Fund Subscription Document: What Investors Sign A hedge fund subscription document is the legal agreement that governs investor entry, accreditation status, fees, liquidity terms, and liability limits.

Hedge Fund vs Private Equity: Key Differences Understand hedge fund vs private equity differences in structure, liquidity, fees, and investor profiles. Core distinctions explained.

Hedge Fund: Global Macro A global macro hedge fund is a fund that makes bets on broad economic trends—currency movements, interest rate changes, geopolitical events, and commodity prices—rather than picking individual stocks. Global macro funds target 10-15% returns but are highly speculative.

Hedge Fund: Long/Short Equity A long/short equity hedge fund is a fund that simultaneously buys stocks it believes will outperform (long positions) and sells short stocks it believes will underperform (short positions). Long/short aims to profit from stock-picking skill while hedging market risk.

Hedge Fund: Market Neutral A market-neutral hedge fund is a fund designed to have zero net exposure to market movements by balancing long and short positions equally. Market-neutral funds aim to profit purely from stock-picking skill, independent of whether stocks rise or fall.

Hedged ETF An ETF that reduces or eliminates exposure to a specific risk—typically currency risk or downside market risk—through the use of hedging strategies and derivatives.

High-Water Mark A reset mechanism in fund performance fees that prevents managers from earning incentive fees on losses that later recover to prior peak values.

High-Water Mark A mechanism preventing hedge fund managers from charging performance fees until the fund recovers prior losses and reaches a new peak net asset value.

High-Water Mark in Fund Fee Structures Understand how high-water mark provisions protect investors from paying performance fees twice on the same gains.

High-Yield Bond Fund A fixed-income mutual fund investing in below-investment-grade corporate debt to pursue higher interest income with commensurate credit and default risk.

How a Fund Manager Change Affects Future Performance Research on how portfolio manager departures affect fund returns, including transition risks, performance persistence, and what investors should monitor.

How Capital Calls Work in a Private Fund The lifecycle of LP commitments from promise to wire: when capital calls hit, notice periods, consequences of default, and uncalled capital impact on fund returns.

How Carried Interest Is Taxed Carried interest taxation at long-term capital gains rates depends on holding periods and fund structure. Explains the 3-year and clawback rules.

How Carried Interest Is Taxed in Hedge Funds Carried interest taxation in hedge funds: the long-term capital gains loophole, how hedge fund managers defer and reduce taxes on performance fees.

How ETF Bid-Ask Spreads Affect Small Investors Why wide bid-ask spreads can dwarf expense ratios for small ETF investors, and how to select liquid ETFs to minimize trading costs.

How ETF Expense Ratios Compound Against Returns Over Time See how expense ratio affects ETF returns over time through real numbers. Even 0.5% annual fees can erode thousands in long-term wealth.

How ETF Securities Lending Revenue Offsets Costs How fund managers lend portfolio holdings to short sellers for fee income, reducing the effective expense ratio investors pay.

How Expense Ratio Drag Compounds Over Time Expense ratio drag on returns compounds dramatically; a 0.5% difference grows into tens of thousands lost over decades.

How Family Offices Allocate to Hedge Funds Hedge fund allocation for family offices: portfolio structuring, due diligence, manager selection, and monitoring strategies.

How Fund Expense Ratios Compound Against Long-Term Returns Small annual expense ratios compound into massive wealth drag over decades; a 0.5% difference on a 30-year holding period can reduce final portfolio value by 30%.

How Fund NAV Is Calculated Step-by-step explanation of net asset value calculation: asset valuation, liability deduction, and share division that determines the per-share fund price.

How Fund Organisational Expenses Are Allocated to Investors Fund organisational expenses are one-time setup costs charged to limited partners. Learn typical caps, amortisation periods, and how they reduce initial capital deployment.

How Fund Turnover Ratio Affects Your Tax Bill High mutual fund turnover ratio generates short-term capital gains taxed at ordinary income rates, raising the true cost of active management for taxable accounts.

How Hedge Fund NAV Is Calculated Learn how hedge fund net asset value is calculated, including illiquid asset valuation, accrued fees, and the role of independent administrators.

How Mutual Fund Capital Gains Distributions Are Taxed Explains why shareholders owe tax on capital gains distributions even if they never sold shares, and how the fund's holding period determines the tax rate.

How Mutual Fund Distributions Affect NAV Why a mutual fund's NAV drops by the distribution amount on ex-dividend date, and why this is not a loss for shareholders receiving the payment.

How Mutual Fund NAV Is Calculated at End of Day How is mutual fund NAV calculated: total assets minus liabilities divided by shares outstanding, priced at market close each trading day.

How Net Asset Value Is Calculated for a Fund Steps through NAV calculation formula and explains which valuation inputs are hardest to verify in illiquid funds.

How Net Asset Value Is Calculated in a Private Equity Fund How GPs value illiquid PE holdings using fair-value marks, third-party agents, and mark-to-model techniques.

How Private Equity Funds Handle GP Conflicts of Interest Surveys types of conflicts GPs face—cross-fund deals, related-party transactions, fee arrangements—and governance mechanisms LPs use to manage them.

How Private Equity Management Fees Are Calculated Understand how private equity management fees are calculated on committed vs. invested capital and why the switch between bases matters.

How Subscription Credit Lines Inflate Fund IRR A subscription line of credit lets fund managers draw borrowed cash before capital calls are funded. This delays cash outflows, artificially inflating IRR even though it increases leverage and risk. Understand the mechanical advantage and its limits.

How to Calculate a Fund Hurdle Rate: Step-by-Step Example Learn how to calculate fund hurdle rate, the minimum return threshold before a general partner earns carried interest on fund profits.

How to Calculate the Hurdle Rate in a PE Fund Calculate hurdle rate in a PE fund using preferred return and waterfall structure. American vs European waterfalls create different accrual mechanics.

How to Compare Two Mutual Funds: A Step-by-Step Framework A structured checklist for comparing mutual funds: expense ratios, risk-adjusted returns, turnover, tax efficiency, and manager tenure.

Hurdle Rate The minimum return threshold a fund manager must achieve before earning any performance fee, creating a buffer between investor and manager incentives.

Hurdle Rate in Private Funds Learn how a hurdle rate sets the minimum return threshold before fund managers earn carried interest on gains.

Impact Investing Fund A private-equity fund targeting measurable social or environmental outcomes alongside financial returns through private-market investing.

Income ETF An ETF focused on generating regular cash distributions through dividends, interest, or other yield-producing mechanisms rather than price appreciation.

Income Fund A mutual fund that prioritizes dividend and interest income over capital appreciation.

Income Streaming Fund A mutual fund or ETF designed to deliver consistent income through dividends, interest, and other distributions, often appealing to retirees.

Index fund An index fund is a pooled investment fund that passively tracks a published list of securities. Pioneered by Jack Bogle, index funds offer low costs, broad diversification, and have outperformed the vast majority of active managers over long periods.

Index Reconstitution and ETF Performance How index reconstitution—adding or removing stocks—creates predictable trading patterns that affect ETF performance around the announcement and implementation dates.

Indicative NAV A real-time estimated net asset value of an ETF's holdings, updated throughout the trading day to help traders assess fair value and detect premiums or discounts.

Inflation-Protected Bond Fund A mutual fund holding Treasury Inflation-Protected Securities (TIPS) and similar bonds whose principal adjusts with consumer price changes.

Infrastructure Fund A private-equity fund focused on long-lived, regulated assets that generate stable cash yields, such as toll roads, utilities, and pipelines.

Infrastructure Fund Investment vehicle acquiring stakes in toll roads, utilities, airports, and other essential infrastructure for stable, long-duration cash flows.

Insurance-Linked Securities Fund Explained How insurance-linked securities funds pool catastrophe bonds and reinsurance, what triggers losses, and why returns are uncorrelated with equities.

International ETF An ETF that holds stocks of companies outside the US, providing geographic diversification and exposure to developed and emerging markets.

International Mutual Fund An international mutual fund or ETF holds stocks from developed countries outside the United States—Europe, Japan, Australia, Canada. International funds provide geographic diversification but carry currency risk.

Interval Fund An interval fund is a non-traded mutual fund that limits investor redemptions to specific intervals—quarterly or semi-annually. Interval funds offer higher yields than public funds due to illiquidity but with restricted exit timing.

Interval Fund Liquidity Rules Explained How interval funds restrict redemptions to periodic windows, the mechanics of secondary trading, and what investors must know before investing.

Interval Fund Redemption Queue Explained How interval fund redemption queues work when redemption requests exceed the repurchase offer limit, plus what investors should expect.

Interval Fund vs Tender Offer Fund: Liquidity Differences Interval funds let investors redeem on fixed intervals; tender offer funds on a rolling basis. The choice affects how often you can exit and what price you face.

Interval Real Estate Fund A closed-end real estate fund structured to offer periodic share-repurchase windows, balancing property-holding illiquidity with investor access.