Entire Section

  • Hedge Fund

    • CIR 3.1.9

      (1) A Fund is a Hedge Fund if it is a Fund which has some or all of the following characteristics:
      (a) it has a broad mandate giving its Fund Manager flexibility to shift strategy;
      (b) it is aimed at achieving absolute returns rather than returns relative to the market;
      (c) it employs some or all of the following techniques:
      (i) the pursuit of absolute returns or "alpha" rather than measuring their investment performance relative to the market;
      (ii) the use of short selling;
      (iii) the use of Derivatives for investment purposes;
      (iv) the use of economic or debt leverage as well as leverage embedded in financial instruments such as Derivatives;
      (v) the acquisition of distressed debt with a view to its realisation at a profit; or
      (vi) the acquisition of "high yield" debt Securities.
      (2) A Fund is a Fund of Hedge Funds if it is dedicated to investing in a number of Hedge Funds or Sub-Funds of one or more Hedge Funds that meet the criteria in (1).
      Derived from RM72/2010 (Made 11th July 2010). [VER13/07-10]