Window dressing occurs when portfolio managers try to improve the performance of an investment before presenting it to investors or shareholders.
It can be detected by carefully evaluating the financial statements of a firm or fund and looking for suspicious transactions that coincide with the end of the quarter or financial year.
Showing off can give the appearance of higher profits, but these strategies are often just postponing losses that materialize later.
Exception 3(c)(7) pertains to a section of the Investment Company Act of the 1940s allowing qualifying private funds to be exempt from certain SEC rules.
3C1 refers to the part of the Investment Company Act of 1940 that exempts certain private equity firms from regulation.
– A firm to be defined as an investment company must comply with certain regulatory and reporting requirements set by the SEC.
Attribution analysis is an evaluation tool used to explain and analyze the performance of a portfolio (or portfolio manager), especially when compared to a certain benchmark.
in the master-feeder structure, investment funds are formed from the capital of investors; these feeder funds in turn invest in a centralized master fund.
In finance, redemption means the redemption of a fixed income security, such as a Treasury bill, certificate of deposit, or bond, on or before the due date.
Two refers to a standard management fee of 2% of assets per year, and 20 means an incentive fee of 20% of profits above a certain threshold, known as the Threshold Rate.