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The Life Cycle of a Hedge Fund and the Operational Risks

19 Apr 2018 09:30 - 20 Apr 2018 16:30
Cordium UK Offices
130 Jermyn Street, London, SW1Y 4UR
Training & Workshops, Investment & Securities
Securities & Investment, Wealth Management, Banking

If you would like to discuss your training requirements in more detail please contact Graham Dix on 020 7484 3987 or your usual Cordium consultant.


Course Overview:

Understand how Hedge Funds operate from the inside and understand the risks and their possible impact on the fund. Follow how Hedge Funds are set up, the tax and regulatory issues. Learn how they make money, who they deal with and the risks that they take to achieve what are, sometimes remarkable returns. You will learn about the types of strategies they use and follow their life cycle, looking at the inherent operational risks at each step!


Course Objectives:

Throughout the course we follow the LIFE CYCLE of a fund and examine the risks as we go.

  • Understand what a Hedge Fund is! How they operate and what their goals are.
  • How are they set up? Limited Partner ? Offshore ? Tax implications?
  • Governance…the key issues
  • Find out how Hedge Funds are structured and who they deal with, such as Prime Brokers, Transfer Agents and Auditors
  • Accredited Investors …Who invests in Hedge Funds and why ?
  • Look at the Regulatory Environment…Why AIFMD, MIFid and EMIR matter
  • Understanding the role of Compliance
  • Understand the fee structure of Hedge Funds
  • Learn what types of Investment Hedge Fund Managers make
  • Understand the various strategies that Hedge Funds Use.
  • Look at past Hedge Fund Disasters and learn how to avoid them in the future!
  • Learn about Leverage and how it is achieved through short positions and derivatives
  • Understand the Key Operational Risks and how to manage them

Key Topics:

  • The role and importance of Hedge Fund Governance
  • The Regulatory Environment… AIFMD,MiFID, EMIR, UCITs V, FATCA
  • How to define Hedge Fund Governance.
  • Hedge Fund Governance Principles: Legal v. Best Practice.
  • An “Effective Compliance Program” (books and records; codes of conduct; confidential information; conflicts of interest; accounting practices; independent and fair valuations; problematic valuations such as derivatives.
  • Location and Tax Treatment. We look at HF domiciles and discuss their structure.
  • Hedge Fund Strategies, we look at some of the following :
    – Event Driven
    – Distressed Securities
    – Merger Arbitrage
    – Global Macro
    – Long /Only Leveraged
    – Market / Neutral
    – Long / Short Funds
    – Convertible Arbitrage
    – Emerging Markets
    – Short Sellers
    – Fund of Funds
  • Hedge Fund Disasters
    o LTCM
    o Amaranth
    o Bayou
  • Operational Risk. What can go wrong running a Hedge Fund
  • Disaster Recovery
  • The TOP 10 Operational Risks.. what to avoid!

Course aimed at: Particularly useful for compliance and audit professionals who need to understand how Hedge Funds operate. The course will also be useful to other staff working in Hedge Funds and those in firms investing in Hedge Funds who need to understand the “big picture”.

This course can also be delivered as an onsite course or as an instructor lead course at a firm’s office.


14 Points
Cordium - Education and Training
130 Jermyn Street, London, SW1Y 4UR, United Kingdom.

Tel: +44 (0) 20 7691 9722
Contact: Graham Dix. Manager Training Solutions