Hedge Funds

Hedge funds are in need of an image restoration – something that can be achieved through risk management, transparency, and strong and compliant operating principals. At RotenbergMeril, we have worked with a variety of hedge funds, in the U.S. and abroad, from start-ups to large institutional funds.

Change typifies today’s financial markets. RotenbergMeril provides the resources and expertise that help clients seize new opportunities. Our financial services industry practice specializes in value-added services for clients, including broker-dealers, investment management companies, and their respective securities funds (hedge funds).

During the critical start-up phase of a fund, RotenbergMeril provides valuable structural advice and expertise, and collaborates with the fund’s general partner and legal counsel on partnership agreements, private placement memorandums and other offering documents. Our clients’ funds — which include both domestic and offshore funds — invest in a variety of financial instruments, including:

  • Derivative financial instruments
  • Distressed securities
  • Foreign securities
  • Other investment partnerships (funds of funds)
  • Traditional domestic debt and equity securities

Once hedge funds are operational, our accounting, audit, and tax services can include:

  • Annual audit of financial statements
  • Preparation of tax returns and related schedule K-1’s
  • Assistance with all stages of private equity funds, including partnership agreements, private placement memorandums and other offering documents
  • Preparation of partnership economic and tax allocations
  • Quarterly compilation or review of financial statements
  • Performance reviews
  • Surprise examinations pursuant to Rule 206(4)-2 of the Investment Advisers Act of 1940
  • Review of tax and accounting allocations to partners
  • General partner over-ride calculations
  • Partner capital account reconciliations
  • Year-end tax estimate letters to partners
  • Assistance with selection of hedge fund software
  • Outsourcing of back-office accounting function

Our hedge fund specialists are on top of the constantly evolving issues that face the industry, including tax legislation, the latest accounting pronouncements, new securities laws, and market tactics that affect investment decisions. We provide technical consulting to allow general partners and/or investment management companies to plan for and achieve optimal financial and tax benefits.