Portfolio Accounting for Hedge Funds
Author: Rita BasuMallick
| CPE Credit: |
4 hours for CPAs |
The course offers a comprehensive overview of accounting for financial instruments generally traded in hedge funds. This includes accounting for instruments - Equity, Bonds, Futures & Options, Spot & Forward contracts, and processing of Corporate Actions. The course goes over security set up, reference data, market data for portfolio pricing, reconciliation issues, P&L analysis, Trade Workflow, Position Lifecycle maintenance. The course briefly touches upon concepts necessary for a Hedge Fund Accountant to appreciate, to maintain accurate books of records - Tax lot accounting, Cost Basis, Realized and Unrealized Gain/Loss.
Publication Date: June 2025
Topics Covered
- Introduction: Process Flow
- Related Concepts and Terminologies
- Accounting for Equity
- Accounting for Bonds
- Accounting for Futures
- Accounting for Options
- Accounting for Currency Forward
- Accounting for Corporate Actions
- Overview of Portfolio Pricing
- Overview of Portfolio Reconciliation
Learning Objectives
- Describe how to explore the definition of commonly traded financial instruments - Equity, Bonds, Futures, Options and Currency Forward contracts
- Identify static data related to trade processing - security set up, trade economics, trade settlement
- Recognize unique accounting issues - trade booking, corporate actions
- Idenfity Cash and Position reconciliation process
- Describe P&L reconciliation
- Identify P&L items on each security type
- Identify some common concepts of portfolio accounting - Tax lot accounting, Inventory Method, Cost basis, Trade date, Settlement date
Level
Intermediate
Instructional Method
Self-Study
NASBA Field of Study
Accounting (4 hours)
Program Prerequisites
Basic knowledge of Accounting (Journal entries, Trial Balance); Basic understanding of how security investment works
Advance Preparation
None
