HEDGE FUNDS
Accounting and Tax

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Every hedge fund needs to prepare NAV (Net Asset Value) and other accounting reports for their investors, as often as monthly and at least once a year. Funds also need to provide investors with annual income tax reports, Form K-1 tax reports and complex tax instructions. The above accounting reports are the building blocks of generating a "performance record" – the cornerstone for attracting investors to a fund.

Accounting and tax compliance services for hedge funds are complex. A hedge fund will face great trouble in trying to use off-the-shelf consumer accounting programs and/or accounting professionals who are not highly experienced with hedge funds.

Accounting Services:

Our main goal is to tailor our accounting solutions to the very specific needs of our clients, not to force feed standardized services to clients and insist on minimums (like much of our competition). We start with important listening and consultation sessions.

Sometimes a client needs specialized accounting software (and we have a few low-cost ones) and other times they don't (e.g., if a client uses prime brokers).

Another important point is that our clients usually don’t require the added high-cost services of an “administrator.”

Picture it this way: If you are starting a larger hedge fund and you have (industry) pedigree with plans to successfully raise more than $100 million, you will certainly need top-shelf providers, including a well-known prime broker, administrator, Big 4 or other larger accounting firm and large law firm.

But if, like most of our clients, you are a start-up or smaller hedge fund, understand that most leading prime brokers will shun your business, administrators will be too expensive (they have large minimum fees) and large accounting and law firms may disrespect you (with fees and service). When it comes to hedge funds, it certainly is a "tale of two cities."

Why throw money after providers who don’t really want your business? There is a better way – the GreenTraderFund way!

We cut out the need for administrators and provide all the necessary help with accounting and taxes. We can introduce you to boutique prime brokers catering to hedge funds who clear through the big boy prime brokerage firms. You get the same service, but with lower costs and more customer service. We craft your accounting solutions based on the other vendors you chose and we fill in the blanks with great efficiency and effectiveness. Plus, we're low-cost and one of the most trusted brand names in the business.

Many of our clients were very successful retail traders and decided to launch a hedge fund. They chose to keep using their trusted online broker, who does not use enhanced reporting like a prime broker. No problem – using our specialized (low-cost) software choices, we can make use of their retail brokerage reports and generate all the accounting and tax reports we need.

Other traders chose to start their hedge funds utilizing the value-added services of a boutique prime broker. Many of our boutique prime brokers offer capital introductions (marketing to investors), leverage, lending, short sales and other services catering to the needs of hedge funds. Plus, they offer excellent rates and customer service.

For the start-up hedge fund, there is no better choice. Select your best brokers and leave the rest to us.

As stated, we save you the added cost of using an administrator, and we charge much less than most administrators. Plus, we handle accounting and tax, whereas many administrators handle just accounting and not tax as well.

One of the main services offered by administrators is handling communications and transactions with investors, including guardianship (approving cash receipts and disbursements). But most of our smaller and start-up hedge fund clients prefer to do these back-office services themselves – not only to save a fortune in administrator fees, but because they can and are more comfortable doing these customer relations themselves. Again, larger hedge funds need the independent services of an outside administrator to handle these functions, but smaller funds do not.

Hedge fund accounting and tax rules vary significantly and it's wise to use one service provider – such as GreenTraderFunds – to reconcile the two (allocations, mark-to-market accounting and more).

GreenTraderFunds offers very attractively priced accounting and tax solutions for incubator funds, start-ups and smaller hedge funds.

Note that our professionals are highly experienced in all types of funds: domestic, international, securities, commodities/futures, Forex, private equity and other special-purpose funds.

"Trader tax status” is also a key tax benefit in hedge funds and GreenTraderTax is the leader in the trader tax marketplace.

Using GreenTraderFunds for all an adviser's and fund's needs provides synergy and tons of savings!

Ready to start? We suggest a consultation with one of our GreenTraderFunds CPA professionals.

Or just call us or email us at hedgefunds@greencompany.com.