Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
Valuation and Exit
Valuation: The Net Asset Value is used as a base for ascertaining the prices applicable to investor subscriptions and redemptions. Fund administrator performs the NAV valuation. NAV calculations should include accrued interest, dividends, and other receivables of the Hedge Fund, as well as accrued expenses (including fees) and other payables. Most of the Hedge Funds are issued with close-ended features (vice-versa in case of FoFs and offshore funds) and valuation of NAV is the major concern voiced by the industry analysts and fund managers about their portfolio of holdings. The NAV valuations are prone to manipulation (due to lack of transparency) and underestimation due to improper selection of benchmarks.
Generally, investment strategy for valuation is divided into two categories (see Table 5): ‘Easy-to-value' and ‘"Hard-to-value' strategy. Easy-to-value strategies constitute 80 percent of overall total asset management and rest 20 percent accompanied with Hard-to-value strategies. The differentiation arises, as it is difficult to estimate the value of investments that are based on various factors and long-term nature of investment.
Exit: Hedge Funds are issued with a lock-up period usually of three years to arrest outflow of funds. As soon as the funds lock-up period comes to an end, investors have the option to exit from the funds by selling either to fund houses (in case of open-ended schemes) and to other eligible investors (in case of close-ended schemes). The redemption or exit price is determined on the basis of the NAV valuation, which the Hedge Fund issues in its monthly, quarterly, or annual reports. Exiting from the fund by offering to the third party might involve the fund manager's intervention on when he feels the transfer of shares can have negative impact on future Fund operations.
Describe the balance of payments identity and discuss its implications under the fixed and flexible exchange rate regimes. Answer: The balance of payments recognize holds that t
Q. Benefits of the proposed policy change? Short-term sources of debt finance comprise overdrafts and short-term loans. An overdraft offers elasticity but since it is technical
OTCEI-COMPOSITE INDEX The OTCEI index is a pure price index. The sum of the prices of all shares as of June, 1993 is in the denominator. The current prices are in the numerator
What are the different types of cash flow to the bondholder of coupon bonds? Coupon bonds deliver two different kinds of cash flow to the bondholder are as follows: a. Face
Explain Gresham’s Law. Answer: Gresham’s law considers to the phenomenon that bad (abundant) money drives good (scarce) money out of circulation. This type of phenomenon was fre
What can a financial institution often do for a deficit economic unit (DEU)that it would have difficulty doing for itself if the DEU were to deal directly with an SEU?
What is capital rationing? Should a firm practice capital rationing? Why? The term Capital rationing is the practice of setting dollar limits on what will be invested in new ca
Shareholders' wealth maximization Shareholders' wealth maximization refers to maximization of the net present value of every decision made in the firm. Total present value is e
Explain the term- Trade receivable days (turnover) [Yearend trade receivables/Credit sales (or turnover)] x 365days It is the average length of time taken by customers t
Q. Describe Factors to Analyze a Company position? - Venture capitalists may be involved in the business because of its significant growth but poorly structured finance. An equ
Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!
whatsapp: +91-977-207-8620
Phone: +91-977-207-8620
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd