Hedge fund meaning

Clyde & Co must face ex-clients pared-back negligence claim Sean O'Sullivan KC, acting as a deputy High Court judge, dismissed Riad Tawfiq Al Sadik’s (Al Sadik’s) allegations that his former lawyers were negligent for not seeking to amend his Cayman Islands claim, which had alleged Investcorp mishandled his hedge fund investment. However, he allowed Al-Sadik to continue against Clyde & Co for an alleged failure to warn of the risk that the Grand Court of the Cayman Islands would issue an anti-suit injunction after Al-Sadik commenced Dubai proceedings to set aside the agreement with Investcorp. The judge noted that, tempting though it might be to dispose of the case neatly, this issue was not suitable for summary judgment and should be determined at trial (see paras [340]-[346]). He added that, because this relatively small component of Al Sadik’s US$88m claim is the sole matter proceeding, the case can be transferred to the Circuit Commercial Court, leaving Clyde & Co to meet a pared-back negligence claim centred on advice about...

Deadlines 12 March 2025 — ESMA consultation on loan‑originating AIFs — ESMA’s RTS consultation for loan‑originating AIFs closes. 3 March 2025 — Savings and Investment Union — The European Commission’s call for evidence closes on this date. 31 March 2025 — ICCL Report — For the Investor Compensation Company DAC compensation scheme, UCITS/AIFM management companies authorised to carry out individual portfolio management must submit the ICCL report; see UCITS—management companies reporting requirement. 21 May 2025 — ESMA’s guidelines on funds’ names using ESG or sustainability‑related terms — End of the transitional period — From this date, the guidelines apply to UCITS and AIFs that existed before 21 November 2024 (discussed here). 31 May 2025 — Fund profile return — All Irish authorised sub‑funds must file the annual CBI fund profile. The CBI Portal deadline for sub‑fund profile returns moves from February to May 2025. The CBI expects profiles to remain broadly stable year to year, with updates mainly mirroring significant changes in the...

Lalone cautions that DORA’s reach remains unclear for UK alternative investment fund managers with EU clients, including hedge funds, private equity, and real estate investment funds. He highlights the growing challenges in DORA-linked contract negotiations between financial entities and their service providers. With regulators able to impose unlimited fines when EU businesses err, the financial and reputational exposure is significant. What is DORA? DORA obliges financial entities to put in place a governance and risk management framework to withstand disruptions to digital and data services arising from third parties, such as cyberattacks. Accordingly, entities must ensure contracts with information and communication technology (ICT) providers satisfy defined standards. In scope entities include investment firms Trading venues such as exchanges Fund managers Cryptoasset service companies Formally, DORA applies only to EU financial entities. However, group-wide systems and controls can ‘bleed through’ borders and influence non‑EU firms. Where a large financial group maintains an internal IT or operational risk management framework at...

This Practice Note reviews the remuneration framework originating from the Alternative Investment Fund Managers Directive 2011/61/EU (AIFMD) and set out in the alternative investment fund manager (AIFM) Remuneration Code (the Code) within the Senior Management Arrangements, Systems and Controls sourcebook (SYSC) of the Financial Conduct Authority (FCA) Handbook at SYSC 19B. It outlines the main elements of the Code, including its reach, the meaning of remuneration and the Code’s principles. Managers of alternative investment funds (AIFs), including hedge funds, private equity funds and other AIFs (such as commodity funds, venture capital funds, real estate funds and investment funds), may all potentially fall within the scope of the remuneration requirements. For an accessible checklist of the relevant requirements, see: —checklist. For details on the equivalent EU requirements, see Practice Note: EU AIFMD—remuneration requirements. For an overview of the UK AIFM regime, see Practice Note: UK regulation of alternative investment fund managers—essentials. Scope of the Code The Code applies to a full-scope UK AIFM of a UK AIF or...

Background to the Volcker Rule and implementation US regulators signed off regulations arising from the so‑called Volcker Rule elements of the Dodd‑Frank Wall Street Reform and Consumer Protection Act 2010 (Dodd‑Frank) on 10 December 2013, and the rules then came into force on 1 April 2014. At its core, the Volcker Rule removes the capacity of US banks to deal as principal in particular trading or investment fund‑related activities. The final rule also provided a conformance window running until 21 July 2015, allowing banking entities time to come into compliance with its prohibitions on proprietary trading and on covered fund ownership and sponsorship, as set out in the rule. General requirements of the final rule Section 619 of Dodd‑Frank inserted a new section 13 into the Bank Holding Company Act of 1956 (BHC Act). Under that section, in general terms, any banking entity is prohibited from engaging in proprietary trading, or from acquiring or retaining an ownership interest in, sponsoring, or having certain other relationships with a...

What are portfolio loans? A portfolio is a collection of investments, eg a group of properties, held by an investment company, hedge fund, financial or pension institution, or individuals. In property finance, portfolio investment loans are facilities offered by funders (banks and non-bank lenders) to borrowers who own, or aim to acquire and hold, a portfolio of properties for investment purposes (see Practice Note: Real estate finance—investment facilities—key features)... When are portfolio loans suitable? There is a blend of property types, such as office, residential or industrial assets Borrowers plan to buy a portfolio of properties Borrowers wish to use part of, or all of, their portfolio as security Rental income varies between properties or may fluctuate across the portfolio Borrowers want to consolidate their borrowings Reasons to consider portfolio financing Larger loan amount The facility is secured against the combined value of the portfolio as a whole... Lower interest rate The funder’s overall...