CAIA Level II: Advanced Core Topics in Alternative Investments, 2nd Edition

39.3 VARIOUS REPORTING REQUIREMENTS FOR HEDGE FUNDS

Hedge funds are facing increasing demands by the SEC to comply with a variety of reporting, disclosure, privacy, and information-protection requirements, many of which are in addition to those imposed on registered investment advisers.

The Exchange Act requires the filing of the disclosure reports listed below.10

• Section 13(d) requires an adviser who beneficially owns more than 5% of a class of publicly traded equity securities to file disclosure reports within 10 days of the acquisition of those securities, identifying, among other things, the source and amount of funds used for the acquisition and the purpose of the acquisition.
• Section 13(f) requires a fund manager with investment discretion of $100 million or more of publicly traded equity securities to file quarterly reports disclosing these holdings and the type of investment and voting authority exercised by the manager.
• Section 13(g) provides an alternative short form to the beneficial ownership reporting scheme for acquisitions by qualified institutional investors and passive investors who acquire securities in the ordinary course of their business and not for the purpose of changing or influencing controls of the issuer.
• Section 13(h) requires certain fund managers with investment discretion who are engaging in certain large levels of purchases and sales of national market system (NMS) securities to file with the SEC and also provide certain identifying information ...