Recent content by JVM

The three routes have pluses and minuses. Trading company - this is probably the easiest to set up as you aren't trading public money therefore you avoid, depending on what instruments you are trading, SEC and/or CFTC registration and the related expense. Hedge Fund - In addition to the...

Our firm provides operational and accounting support to trading firms, investment advisors and hedge funds. I would welcome the opportunity to discuss this further to see if our services would be a good fit for your firm. Jeff McKinley Senex Solutions LLC Chicago Illinois...

Here's a ruling from the SEC regarding providing advice over the internet: http://sec.gov/rules/final/ia-2091.htm

From my experience, the offering regulations are not overly burdensome but I believe they can become complex depending on particular situations.

There's really no reason to allow US Tax Exempts into a non-US fund unless that fund uses debt and generates UBTI which creates a tax liability for US Tax Exempts. If there is no debt financing, then the US Tax Exempts can invest in the US based fund. If the fund does generate UBTI, the fund...

So the tax-exempt investors which want to invest in Hedge Funds have to invest OFFSHORE, and not in US funds. What does that mean for the Offshore funds? If they accept non-US investors and ONLY the tax-exempt investors, would they have to give to the IRS details of all the investors...

You could structure either a US LLC/partnership or offshore corporation (treated as a partnership for tax purposes) for all investors. It really depends on the manager's investor base, whether debt is used, etc. There are a lot of factors particular to a manager to consider which is best...

Disclosure of all partners, US and Non-US, to the IRS can be an issue. However, if the US investors want to avoid PFIC reporting issues, the fund will need to be treated as a partnership. You would have the ability to create an additional fund that would accept the non-US investors and have...

A US investor can invest in a Non-US based fund and receive the same tax treatment as if they were invested in a US based fund. The Non-US fund would need to file an election with the IRS to be treated as a partnership for US tax purposes. Jeff McKinley Senex Solutions LLC Chicago, Illinois

The US Income Tax Regulations further clarify that the investor in a domestic partnership will not be considered to be in a Trade or Business simply by being an investor in a partnership as opposed to an individual account. Note that there are some additional issues concerning the composition...

There are special Trading Safe Harbors in the IRS code that make an exception for trading in securities and commodities for one's own account where these activities are not to be considered a trade or business operated in the United States. As such, the income is not Effectively Connected...

If you are trading only forex and futures instruments you do not need to register as a Registered Investment Advisor (RIA). RIA status is applicable if you are trading securities. Commodity Trading Advisor (CTA) registration would be more applicable since you are trading futures.

My understanding of Advent products is that you'll need two different software packages - One to track the portfolio (Advent Axys, I believe) and one for partner accounting (Advent Partner). If you are trading anything besides equities (Forex, Futures) this may not be your best solution. Our...