Hedge Fund Closure

19 April 2019
Hedge fund closing

We decide to close our hedge fund EAM Stocks&Derivatives Strategies. However, we don’t leave trading in exchanges. The decision about closing caused by changes in the regulations of hedge funds industry. The service of hedge-fund (Cayman Islands) costs now about $70,000 annually. From 2020 the offshore management companies and hedge-funds should to open the offices and hire the employee’s or in the jurisdiction of the registration or in the jurisdiction where is making business. If the micro hedge fund has less $10 mln in the assets so hedge fund business will make not profitable now. Maintenance of the office and staff, which will actually be nominal as before, will cost an additional $ 100,000 per year. In summary the costs for maintenance of the hedge-fund increase until $ 150,000 – 200,000 annually. If we have a capital gain around $ 20 mln we will launch the new hedge-fund again. For a new hedge fund, we will hire employees for administration and salesman because we want to focus on investment strategies and marketing. All my trading activities I will transfer to my Cyprus company Eganov Investments as I traded earlier until launched my hedge fund. Alexander Kurguzkin will continue working with me as a head trader and partner of the business. He continues to develop new strategies and trades the current investment portfolio. The performance of the investment portfolio will continue to be published on eganov.com.  Notwithstanding we could not demonstrate the great performance we continue to develop the new strategies and we are sure to bit the benchmark S&P500 with the great coefficient Sharp.

Author: Denis Eganov
Russian entrepreneur
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