George Town, Cayman Islands, August 29, 2009 --(PR.com
)-- The definition of a hedge fund managed account is any investment instrument where a hedge fund manager is employed as a sub-advisor to the vehicle. The manager’s role is limited to the right to make asset allocation and timing decisions.
There are two different types of managed account models: the separately managed account (SMA) and the comingled managed account (CMAP). The SMA mimics the separately managed account in which an investor opens accounts with custodians/prime brokers and employs managers as sub-advisors to make investment decisions on their behalf. By contrast, the CMAP method looks more like a traditional hedge fund structure where multiple investors buy interests in a vehicle sub-advised by the hedge fund manager but administered by an independent third party manager who controls the operation of the fund.
The primary impetus for the increased interest in managed accounts has been the need to mitigate the liquidity and transparency risks that are perceived in the existing hedge fund model. By moving control of assets away from the hedge fund manager, the managed account approach, along with the requisite system of controls can help reduce the chances of these risks occurring.
Global Hedge Fund Group Ltd. ( GHF Group ) has been developing customized alternative investment solutions and providing corresponding advisory services since 2000. Our priority lies with hedge funds and private equity. All products are designed to provide sustainable and above-average rates of return. Instability and risk are reduced by well-structured investment strategies whose clarity and success are established. Our team of competent professionals has the distinction of reliability, effectiveness and promptness. GHF Group's expertise in hedge funds is enhanced by a close association with leading research firms, successful hedge fund managers, and brokerage houses whose macro research gives its research team an edge in understanding world market trends, enabling them to make better hedge-fund allocation decisions. For more information, visit Global Hedge Fund Group’s website at ghfgroup.net.
This news release may contain forward-looking statements, as defined by securities laws, including statements about the financial outlook and business environment. Any such statements are based on current expectations and involve a number of risks and uncertainties. Important factors, including those mentioned in this news release, that could cause actual results to differ materially are set forth in the company’s current annual report and subsequent filings. They include risks and uncertainties relating to the pace at which GHF Group adds new clients or at which existing clients use additional services, the value of global and regional financial markets, and the dynamics of the markets GHF Group serves. GHF Group encourages investors to review filings in conjunction with this announcement and prior to making any investment decision. The forward-looking statements contained in this news release speak only as of the date of release, and the company does not undertake to revise those forward-looking statements to reflect events after the date of this release.