Only several parties can participate in providing hedge fund which is lawyer, administrator, accountant, consultant and forex broker. Lawyer plays an important role to sketch the required legal documents and offer legal advice while administrator needs to prepare report and determine fees and expenses. Consultant must be available to offer services such as marketing to companies and lastly, broker is the sole caretaker of properties. Among some of the offering documents required for hedge fund are limited partnership agreement (LPA), subscription documents and private placement memorandum (PPM).
LPA is meant to oversee legal documents, subscription documents offer answers to investor suitability while PPM contains discussion on structural terms and investment programme. In fact, PPM resembles mutual fund prospects. Finally, here are instructions for those who would like to get started with hedge funds. First and foremost, register as a Commodity Pool Operator (CPO).
Perhaps, you should check out www.iard.com as the website will guide you to complete the rest of the process. Sketch out your investment strategies and methods and identify what are your objectives for fund investment. These will guide you as you progress to the subsequent step. If you intend to establish commodity hedge fund, remember to register as a member of National Futures Association (NFA). Most importantly, get a copy of each legal document (LPA, PPM and subscription documents) from your firm in-charge of the fund.