Which investment structure offers the most control to a large investor?
Explanation
SMAs are bespoke accounts owned by the investor, offering maximum transparency and control.
Other questions
What is a primary characteristic of the regulatory environment for hedge funds compared to mutual funds?
Which entity typically provides custodial, administrative, and money lending services to a hedge fund?
In a limited partnership structure for a hedge fund, what role do the investors typically hold?
What is the term for the time period after an initial investment during which withdrawals from a hedge fund are not allowed?
A 'Notice Period' in the context of hedge funds refers to what?
Which of the following is a primary disadvantage of investing in a Fund of Funds (FoF)?
Merger Arbitrage is classified under which category of hedge fund strategies?
In a typical Merger Arbitrage trade, if Company A is acquiring Company B, what positions does the hedge fund take?
Which event-driven strategy focuses on buying the debt of companies in financial difficulty?
An 'Activist Shareholder' hedge fund strategy primarily aims to do what?
Which strategy involves exploiting pricing discrepancies between convertible bonds and the common stock of the issuing company?
Under the 'Volatility' relative value strategy, a manager would consider an asset overvalued if:
Macro strategies are best described as being based on:
What is the primary goal of a 'Market Neutral' equity hedge fund?
Which equity hedge strategy involves buying undervalued shares and shorting overvalued shares based on technical analysis?
What distinguishes 'Fundamental Value' strategies from 'Fundamental Growth' strategies?
A 'Short Bias' strategy typically maintains what kind of market exposure?
Which investment form involves a tax-efficient offshore/onshore structure where capital is invested based on partnership agreements?
What is a key feature of Separately Managed Accounts (SMA) in hedge fund investing?
What is the common 'Two and Twenty' fee structure?
If a hedge fund has 100 million USD in assets, what is the annual management fee under a standard 'Two and Twenty' structure?
If a hedge fund generates 10 million USD in net profits, what is the incentive fee under a 'Two and Twenty' structure?
What is a characteristic of Hedge Fund Replication ETFs?
Regarding valuation, why might 'Trading NAV' be lower than 'Accounting NAV'?
Which of the following is an important factor in hedge fund due diligence?
Which strategy would a manager likely use if they believe a specific company will be spun off from its parent?
A 'Multi-strategy' relative value fund is best defined as one that:
What type of analysis do Quantitative Directional funds primarily use?
Which of the following is a disadvantage of exchange-traded products (ETFs) replicating hedge funds?
What does a 'Prime Broker' provide to facilitate short selling for a hedge fund?
If a hedge fund has a 'Fundamental Growth' strategy, what characterizes the companies it invests in?
Which strategy specifically involves buying shares of firms issuing or repurchasing securities?
What is the primary benefit of a 'Fund of Funds' for a small investor?
Relative Value strategies aim to profit from:
Which due diligence factor assesses the 'appropriateness of benchmarks'?
General Fixed Income strategies exploit pricing discrepancies between:
Which of the following describes the 'Short Bias' equity hedge strategy?
What type of risk is specifically mentioned as a due diligence factor regarding the fund manager?
Asset-backed fixed income strategies exploit pricing discrepancies among:
If a hedge fund manager expects implied volatility to be lower than future realized volatility, what action would they take?
Which of the following is an advantage of 'Hedge Fund Replication ETFs'?
A 'Market Neutral' strategy typically has a beta of approximately:
What does 'Longevity' refer to in the context of hedge fund due diligence?
Which event-driven strategy is most likely to be negatively affected if a planned acquisition deal falls through?
Hedge funds often seek 'Absolute Returns', which means:
What kind of assets do hedge funds typically invest in that mutual funds might avoid?
Which strategy involves simultaneous long and short positions in equities to minimize market risk?
A 'Convertible Arbitrage' strategy profits when:
Hedge fund 'Accounting NAV' is typically higher than 'Trading NAV' because: