GlobeOp Reveals Results Of PF Test Filings

Mar 26 2012 | 9:27am ET

With the first Securities and Exchange Commission filing deadlines for hedge funds looming, hedge fund administrator GlobeOp says it has learned a number of lessons from its private fund (Form PF) test filings on behalf of clients.

“Four broadly applicable lessons emerged as we coordinated practice filings with clients wanting to be well-prepared and confident when their reporting becomes mandatory at the end of June,” said Vernon Barback, GlobeOp president and chief operating officer.

Barback found that regulatory assets under management calculations confused some fund management companies, which thought the filing was driven by the fund’s net asset value whereas RAUM is a measure of gross assets on a firm’s balance sheet, including derivatives. As a result, says GlobeOp, firms with even modest leverage can have significantly higher RAUM than their normal NAV or AUM measures. This can affect a fund’s specific category of filing deadlines, frequency and content.

In addition, GlobeOp says the XML filing format requirements released by FINRA earlier this month have “technology development implications” for funds or service providers planning to prepare Form PF reports.

The hedge fund administrator found “considerable room for interpretation in the way a fund management company completes Form PF.” For many questions, it says, there is no single answer.

“Managers should consider when developing their responses that Form PF, or parts of it, could potentially become a future element of investor due diligence. Data reporting choices made now could significantly affect how funds may be viewed in future by investors.”

Lastly the firm advocates early preparation: “Sourcing and processing such a wide range of data is a challenge in itself—organized, controlled and sustainable procedures are essential.”

Under the SEC rules approved last year, funds with more than $5 billion in regulatory assets under management must file their initial Form PF, representing a view of their portfolios during April, May and June, by August 29, 2012.

Advisors with $1.5 billion to $5 billion in regulatory assets under management will begin filing by February 28, 2013, and advisors with between $150 million and $1.5 billion will begin filing by April 30, 2013.

 

 


In Depth

JOBS Act Propels Real-Estate Crowdfunding Platform

Oct 21 2014 | 2:57am ET

If D.J. Paul were a real estate development, he would be described as “multi-use...

Lifestyle

Strippers Accused Of Robbing Hedge-Fund Manager Face Jail

Oct 20 2014 | 9:20am ET

A group of alleged stripper-thieves—whose victims include a hedge-fund manager...

Guest Contributor

PAAMCO: European Equity Exposure - Challenging Year, But All is Not Lost

Oct 16 2014 | 4:12am ET

European equity hedge fund managers have had a tough time so far this year. The...

 

Videos

Editor's Note

    Must Attend Hedge Fund Charity Events For October

    Sep 30 2014 | 9:29am ET

    The crisp Autumnal days of October are upon us, and so are a few of the hedge fund industry’s favorite charitable events. If you have never been to Rocktoberfest, well, you are missing out. And for a quieter evening of sipping and socializing, stop by HFC’s Wine Soiree. Read more…

 

Futures Magazine

October 2014 Cover

Deeply flawed risk benchmark

Most traders agree that proper risk management is the key to successful trading. However, many traders depend on the deeply flawed measure of standard deviation as a benchmark of risk. Here we put it ...

The Alpha Pages

TAP July/August 2014 Cover

The Alpha Pages Interview: Senator Rand Paul

Senator Paul sat down in the debut series of the Alpha Pages Interview to discuss the broken tax code, regulation surrounding Bitcoin, and his plans for the 2016 Presidential election.