Beginner
Reading the offering memorandum and fund agreement
The offering memorandum describes the opportunity, while the governing agreements define important rights and obligations. Read them together before relying on a presentation.
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Hedge Funds Investment Guide
Understand hedge fund structures, investigate strategies and fees, and build a disciplined manager research process. Follow eight stages from investor access and portfolio mechanics to due diligence and ongoing review.
Start with What a hedge fund is and what it is not, then follow the next lesson links. Explore 32 lessons with worked examples, exercises and further reading.
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Fund Terms and Liquidity · All lessons
Fund Terms and Liquidity
Read the agreement and connect fees and exit terms to your investment experience.
Beginner
Management fees, incentive fees and the investor return
The investor receives what remains after the applicable expenses and fees. A fee label is incomplete without its calculation base, sequence and timing.
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Beginner
High water marks, hurdle rates and crystallization
High water marks, hurdles and crystallization dates determine when performance compensation becomes payable. Similar sounding terms can produce different results.
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Beginner
Lockups, notice periods, gates and side pockets
Redemption rights are a sequence of conditions. A request date, dealing date, payment date and possible restriction can all differ.
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