This course offers an overview of what Hedge Funds are, how they operate and what is Hedge Fund Accounting all about. The course offers fundamental knowledge of Net Asset Valuation (NAV) concept, essentials of NAV calculation, NAV accounting and reporting process. It describes some useful terms a Hedge Fund Accountant can expect to encounter, basics of portfolio accounting, pricing, and reconciliation process. The course briefly discusses a fund’s income and expenses, and their impact on NAV. Finally, the course offers a bird’s eye view of hedge fund structures, fees, and basic investors’ capital activities.
Publication Date: May 2021
Topics Covered
- Overview of Hedge Funds
- Concept of Net Asset Value
- Investment Portfolio Accounting
- Fund Fees — Management fees, performance fees
- Accounting for Fund Expenses, Fund Structures, and Capital Activities
- NAV Calculation
Learning Objectives
- Describe the definition and broad structure of a Hedge Fund as an investment vehicle
- Recognize fundamentals of accounting issues for Hedge funds
- Recognize the concept of Net Asset Valuation and steps involved in NAV calculation
- Identify key elements of investments, portfolio accounting, valuation, and reconciliation
- Identify the value of the Bond Position
- Describe NAV
- Recognize when NAV is recognized in various scenarios
- Differentiate between equity and bonds
- Recognize true statements about "Par" of a bond
- Describe accurate statements regarding capital transactions
Level
Intermediate
Instructional Method
Self-Study
NASBA Field of Study
Accounting (2 hours)
Program Prerequisites
Basic knowledge of Accounting (Journal entries, Trial Balance)and how security investment works.
Advance Preparation
None
Instructor
Rita BasuMallick
CPA, MBA, CA
Rita is a CPA with over 17 years of experience in investment accounting , middle office operations and fund administration, including roles at State Street, SS&C Technologies, Linedata and PwC. Her CPE courses focus on hedge fund structures, portfolio accounting systems, valuation of complex financial instruments, and regulatory reporting. Backed by an MBA in Financial Markets from NYU Stern and Chartered Accountant credentials from India, she brings real-world expertise with instructional clarity.