Insights

This newsletter briefly highlights certain tax issues and planning that hedge fund managers should consider (or reconsider) before year-end. 1. Trump Presidency. With the election of Donald Trump as President, year-end tax planning is “business as usual” – that is, generally accelerating deductions and deferring income since rates are not expected to increase in 2017.…

Client Alerts | November 21, 2016 | Hedge Funds

In General Section 871(m) of the U.S. Internal Revenue Code of 1986, as amended, was enacted in 2010 and imposes a 30% U.S. withholding tax (subject to reduction by an applicable tax treaty) on dividend equivalent amounts paid (or deemed paid) on certain swaps and equity linked instruments referencing U.S. equities if the long party…

Client Alerts | November 18, 2016 | Derivatives | Hedge Funds

On October 24, 2016, the staff in the Office of Compliance Inspections and Examinations (the “Staff“) of the U.S. Securities and Exchange Commission (the “SEC“) issued a risk alert announcing that it is examining registered investment advisers (“RIAs“) and registered broker-dealers for compliance with Rule 21F-17 under the Securities Exchange Act of 1934, as amended…

Client Alerts | November 9, 2016 | Hedge Funds

Amendments Would Provide Investors the Ability to Choose More Easily Between Candidates Offered by Activists and Candidates Offered by a Company On October 26, 2016, the Securities and Exchange Commission (“SEC”) proposed amendments to the proxy rules to facilitate voting in director elections by, among other things, requiring parties in a contested election to use…

Client Alerts | October 28, 2016 | Investor Activism | Hedge Funds

On August 25, 2016, the Securities and Exchange Commission (the “SEC“) adopted amendments to Form ADV and to certain rules promulgated under the Investment Advisers Act of 1940, as amended (the “Advisers Act“).[1] The effective date of these amendments is October 31, 2016, but the compliance date is not until October 1, 2017, and many…

Client Alerts | September 29, 2016 | Hedge Funds

On September 1, 2016, the Loan Syndication and Trading Association (the “LSTA“) implemented significant changes to the provisions in the trading documentation governing whether a buyer is entitled to receive delayed compensation for a par/near par trade (hereinafter, a “Par Trade“). Delayed compensation is a payment by seller to compensate buyer when a Par Trade…

Client Alerts | September 8, 2016 | Hedge Funds