Long/Short Funds
Long/short equity is the strategy most closely associated with Hedge Funds. The very first Hedge Fund (created by Alfred Winslow Jones back in 1949) used this strategy as Mr. Jones wanted to benefit from moves in the market, regardless of direction. This investment strategy involves taking long positions in stocks that are projected to rise in value and taking short positions in equities that are expected to fall in value. Such a strategy aims to reduce market risk while gaining from stock price increases in long positions and price drops in short ones.
A long/short fund is a fund that utilizes the above strategy. These funds frequently employ a variety of unconventional investing strategies, including leverage, derivatives, and short positions, to buy inexpensive securities and sell overvalued ones. Many Hedge Funds use a market-neutral strategy, in which the long and short positions are equal.
Kensington can assist Funds that practice this widely used strategy. We can price your long/short portfolio with an independent source and perform a three-way reconciliation with the broker/custodian to your own records and identify discrepancies.
Kensington Fund Services Ltd.’s highly qualified and experienced team provides a full range of portfolio and fund accounting services to investment entities domiciled in onshore and offshore jurisdictions.
We are licensed by the Bermuda Monetary Authority (“BMA”) and are subject to their oversight. The BMA has a very thorough licensing criteria and conducts regular on-site reviews of the entities that are under their supervision. Our Fund Administration license, therefore, provides you with an additional layer of comfort when deciding on which administrator to use, regardless of where your fund is domiciled.
Kensington strives to balance the needs of investors, timely delivery of accurate information, and the protection of its clients and investors while maintaining adherence to stringent due diligence procedures under AML/ATF legislation and KYC guidelines. Our services include:
Contact us to find out how can provide services to your long/short Fund.