What's What in the Financial Services Industry

Hedge Fund Manager

Definition: individual whose single client is the hedge fund itself, not the investors in the fund. Hedge fund managers are responsible for implementing a fund's investing strategy and managing its portfolio trading activities. Fund managers are paid a fee for their work, which is a percentage of the fund's average assets under management.

License: must be registered with the Indiana Securities Division as an investment adviser representative if they have a place of business in Indiana

Regulated by: there is no federal regulation for hedge fund managers; on the state level, they are regulated by the Indiana Securities Division if they have a place of business in Indiana

Standard of care: hedge fund managers regulated by the Indiana Securities Division have a fiduciary duty owed to the fund itself, not necessarily to the investors in the fund

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Explanation of License Exams:

  • Series 7 - General securities representative exam
  • Series 63 - Uniform state law exam
  • Series 65 - Investment adviser exam
  • Series 66 - Uniform combined state law exam
  • Series 24 - General securities principal

Related Information: