Kevin Martoken has served since 2013 as a fund accountant with Grassi & Co. in New York City. In this role, Kevin Martoken oversees administration of the firm's hedge fund activity. A hedge fund is, in essence, a partnership between investors and a fund manager. The investors in the fund, occasionally known as limited partners, provide the capital that the fund manager allocates as he or she deems appropriate. The fund manager's goal is to maximize returns, regardless of market activity, using a hedging strategy. Hedging requires the fund manager to depend on falling prices in some products or asset classes and rising prices in others. The manager might, for example, buy the shares of a company expected to rise in value, while short selling other investments as protection against potential loss. The range of products available for this process depends on the mandate of the fund, as there are no specific restrictions on the investment activity of the hedge fund itself. Because hedge fund investing requires a high level of risk tolerance and understanding of market dynamics on the part of investors, it is typically only open to sophisticated, qualified, high-net-worth investors. Most often, investors’ net worth must exceed $1 million for them to participate. Investors must agree to the terms of the fund as well as to any agreed-upon fees, which often include an asset management fee and a success fee as a percentage of generated gains.
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AuthorAs a fund accountant with the New York City firm of Grassi & Co., Kevin Martoken administers and oversees all financials, reconciliations, and audit support for an active hedge fund. Archives
January 2017
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