Financial Disclosures - 5 Tips on What Not to Do

Posted on Thursday, September 18th, 2008 | In Hedge Funds

Contributed by: Richard C. Wilson (http://richard-wilson.blogspot.com/) -

Financial Disclosures

Hedge Fund Disclosure Tips

There are many “how to” articles for hedge fund managers, so here is a list of 5 short tips on what not to do while writing disclosures for hedge fund performance or marketing materials.

Objectivity is a must - writing in a strong positive slant can actually hurt your fund’s image and reputation during a due diligence process
Always work with a compliance consultant, CCO or 3rd party auditing firm on any performance or marketing related materials. If you are not a licensed or recognized legal expert it pays in the long run not to act as one. Even if your hedge fund is a on a tight budget it would pay dividends to invest in wise legal advice for disclosure related tasks and other work.
Never leave more questions than existed before the disclosure was read - when needed refer to a full disclosure resource which is also “compliance approved.”
Do not print disclosures in size 5 font. Publish disclosure language in a close or same size font as the rest of the marketing materials - not only does this prevent looking like you are hiding something but many times disclosures help educate investors in positive ways
Do not write lengthy redundant explanations while a short to point factual disclosure will do. Concise, collectively exhaustive and mutual exclusive are good rules to live by while writing disclosures. Every word and inch of space on your marketing materials is worth thousands of dollars, don’t waste it with redundant sentences or by leaving out key facts and figures.

Free Daily Hedge Fund Newsletter

Related to Financial Disclosures:

Permanent Link: Financial Disclosures

Tags: Financial Disclosures, Hedge Funds Disclosure, Hedge Fund Disclosures, Investment Disclosures, Security Disclosures, Performance and Marketing Disclosures, SEC, FINRA

Last 5 posts by Richard C. Wilson

Hedge Fund Backers | A List of Capital Sources for Hedge Funds - December 29th, 2008
Bernard Madoff Hedge Fund Manager Notes - December 28th, 2008
Understanding Hedge Funds | Video Definition - December 28th, 2008
Hedge Fund Ethics | A New Code - December 24th, 2008
What is a Family Office? | Wealth Management - December 22nd, 2008

About Richard C. Wilson (http://richard-wilson.blogspot.com/)
Richard Wilson is a hedge fund consultant and head of the Hedge Fund Group (HFG). Richard writes articles on the hedge fund industry on a daily basis. Most of these articles are straight forward educational pieces on hedge fund strategies, terms & definition, trends, book reviews and interviews.

Richard has written two books, The Hedge Fund Blog Book and Rainmaker. The Hedge Fund Blog Book is a collection of my blog posts downloadble for free at HedgeFundsBook.com. Rainmaker is a negotiation and sales book for investment professionals available in electronic, paperback and hardback form at Rainmaker.ws.

Richard's articles have been picked up and used by Reuters, Fox Business News, HedgeCo, Hedge Fund Daily, Nielsons, Wealth Management Exchange, Investopedia.com and a couple dozen niche financial and investment focused blogs and email newsletters, most recently StraightStocks.com

Richard loves networking and truly believes that if you freely give away your knowledge and lessons you have learned in business others will come to your aide when you need a favor or would like to form a business partnership. Email Richard at Richard@RichardCWilson.com

Custom Search