对冲基金的决定因素内部控制及费用外文翻译.docVIP

外文翻译 原文 Determinants of Hedge Fund Internal Controls and Fees Material Source: Author: Gavin Cesar Hedge funds encompass a diverse range of privately managed investment vehicles that are exempt from a broad range of federal acts regulating investment vehicles. They are typically not exchange traded and not registered with the Securities and Exchange Commission (SEC). Hence, hedge funds are in general exempt from securities regulations that dictate internal controls that managers must implement and maintain, fees that managers can charge investors, and disclosures that fund managers must make to investors. Therefore, hedge funds are opaque investment vehicles that expose investors to the risk of substantial losses arising from fraud and/or financial misstatements. Hedge funds thereby provide a setting to examine the extent to which fund managers voluntarily implement internal controls to limit agency costs arising from fraud or financial misstatements, and the extent to which investors value such internal controls when determining the fees that they are willing to pay fund managers. In this study, we examine the determinants of hedge fund internal controls and the association between internal controls and the fees that fund managers charge investors. We use a broad definition of internal controls that encompasses mechanisms designed to decrease the likelihood of fraud, and to increase the accuracy of asset valuations and performance disclosures made to investors. Some examples include the independent pricing of investment positions, signature protocols for transferring funds from bank and prime brokerage accounts, and the use of reputable service providers, such as auditors and administrators. The risks that hedge fund internal controls monitor and reduce could be more important than financial risks in determining hedge fund performance (Lo 2001, 30–31; Kundro and Feffer 2003). To investigate the use of internal controls and their association with fees,