Hedge Fund Operations

Price: $995   Register now

Course Features

  • Course Code: 209
  • Certificate: Yes
  • CPE Credits: 7
  • Level: Beginner
  • Prerequisites: Knowledge of CM
  • Method: Live & Virtual
  • Venue: MicroTek
  • Time: 9:00 am – 5:00 pm
  • Registration: 8:30 am
  • Dress Code: Business Casual

Overview

This one-day program uncovers the structure and function of Operations that support a Hedge Fund in the arena of alternative investments. Starting with the processes that support the interaction between the fund manager and the broker/dealer when the deal is executed, to the settlement and control of assets at the Prime Broker, participants will gain an appreciation of areas of operations risk related to Hedge Funds.

As the industry has moved to a multi-prime model, the role of the Fund Administrator has broadened to include services beyond fund accounting to areas such as collateral management. This program will describe what a fund administrator provides, as well as the communication and interfaces required for a commercially sound operation at the Fund.

Course Objectives

By the end of this course, participants should be able to:

  • Describe how a hedge fund originates and agreements with investors
  • Explain the structure of a “fund of funds”
  • Identify the components of the Operation needed to support a Hedge Fund
  • Compare the single vs. multi-prime model
  • Evaluate the role and interfaces of a Fund Administrator
  • Follow the lifecycle of a trade initiated by a Hedge Fund

 

Session 1:  The Origins of a Hedge Fund

By the end of the session, participants will be able to:

  • Explain the requirements to set up a hedge fund
  • Identify investor types and motivation: institutional, high net worth, and retail
  • Discuss customer agreements for hedge fund investors fund trading and investment strategies
  • Describe the schematics of hedge fund manager compensation programs
  • Highlight the role of the “fund of funds” in the Hedge Fund world

 

Session 2: Hedge Fund Participants and Product Types

By the end of the session, participants will be able to:

  • Describe what cash and derivative products hedge funds trade
  • Identify the purpose of High Frequency Trading (HFT) for some hedge funds
  • Define the differentiating characteristics of a prime broker and a fund administra tor
  • Identify the purpose of a clearing broker in the Hedge Fund Operation
  • Explain what goes into the master agreements that are necessary to set up accounts with prime brokers

 

Session 3: Trade Executions at the Hedge Fund

By the end of the session, participants will be able to:

  • Describe how decision to trade originates with the fund manager and trading desk at the Hedge Fund
  • Recognize the path to the various marketplace for the trade: Algo’s, HFT’s, executing brokers, dealers and Inter-Dealer Brokers
  • Discuss how a “give-up” occurs and the operational support required
  • Identify the role of the Middle Offices at the Hedge Fund as well as the broker

 

Session 4: Confirmation, Clearance and Settlement

By the end of the session, participants will be able to:

  • Identify the path of confirmation and affirmation involving the hedge fund operation, the executing broker, and prime broker
  • Highlight importance of confirmation as a risk management tool
  • Define what is meant by a “CNS flip” and why it occurs
  • Recognize the involvement of the clearing houses and depositories in the Hedge Fund trade lifecycle
  • Appreciate the necessity of operations risk and control for the Hedge Fund
  • Evaluate the impact and costs of fails to the Hedge Fund

 

Session 5: Fund Administration for Hedge Funds

By the end of the session, participants will be able to:

  • Describe the role of the Hedge Fund Administrators
  • Compare and contrast fund administration provided for mutual funds vs hedge funds
  • Discuss the communication paths among Hedge Fund operation groups, the Prime Broker, and the Fund Administrator
  • Appreciate selection criteria for the fund administrator and differentiating characteristics
  • Recognize the increasing importance of collateral management performed by Hedge Fund administrators
  • Identify areas that support accounting and reporting functions
  • List gaps and exposures in the trade process that create operations risk

Instructor

  • Charlotte is a broadly accomplished financial services executive with over 25 years of comprehensive experience in delivering innovative and cost-effective operations and technology training solutions for equities, derivatives and fixed income product lines.  Her successful career as a senior-level manager in Operations at Credit Suisse, Paine Webber and Bankers Trust furnishes the industry expertise that …
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