Commingled Fund vs SMA Type

Over at The Hedge Fund Law Blog, we found a great little article that clearly explains why Adaws Eagle Fund is structured as a Commingled Fund (referred to as the Hedge Fund Model in the blog) over an SMA (Separately Managed Account).

We highly recommend that you read it. Doing so will allow you to better understand the pass-on value we bring to clients using a Commingled Fund structure.

Excerpt follows...


Advantages of the Hedge Fund Structure

The three central advantages of the hedge fund structure over the separately managed account structure are (1) ease of management, (2) potentially lower transaction costs, and (3) tax efficiencies.

  1. Ease of Management – one of the great things about running a hedge fund is that the manager only has to manage one single brokerage account. With a separately managed account business a manager will need to make separate trades for each account or do a block trade...

Read the remainder at The Hedge Fund Law Blog.


Enjoy!

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