Instructor for this course

This course offers an overview of what Hedge Funds are, how they operate, and what Hedge Fund Accounting all about. The course offers fundamental knowledge of the Net Asset Valuation (NAV) concept, essentials of NAV calculation, and NAV accounting and reporting process. It describes some useful terms a Hedge Fund Accountant can expect to encounter, basics of portfolio accounting, pricing, and reconciliation process. The course briefly discusses a fund’s income and expenses, and their impact on NAV. Finally, the course offers a bird’s eye view of hedge fund structures, fees, and basic investors’ capital activities.

Topics Covered

  • Overview of Hedge Funds
  • Concept of Net Asset Value
  • Investment Portfolio Accounting
    • Related Concepts and Terminologies
    • Accounting for Equity
    • Accounting for Bonds
    • Dividend and Interest Accrual
    • Portfolio Pricing process
    • Reconciliation Process
  • Fund Fees – Management fees, performance fees
  • Accounting for Fund Expenses
  • Accounting for Fund Structures, and Capital Activities
  • NAV Calculation


Learning Objectives

  • Explore the definition and broad structure of a Hedge Fund as an investment vehicle.
  • Recognize fundamentals of accounting issues for Hedge funds.
  • Explore concept of Net Asset Valuation and steps involved in NAV calculation.
  • Identify key elements of investments, portfolio accounting, valuation, and reconciliation.
Last updated/reviewed: October 31, 2021

2 Reviews (12 ratings)Reviews

Member's Profile
This was a helpful and informative program. It is helpful for anyone looking to understand the basics of accounting for hedge funds.
Member's Profile
i thought the content was good but the instructor was hard to understand at times. her pronunciation of certain words was not good.


Course Complexity: Intermediate

Basic knowledge of Accounting (Journal entries, Trial Balance).
Basic understanding of how security investment works.

For more knowledge, examples, etc., It is recommended to take Other Hedge Fund Accounting courses by Rita Basumallick.
Hedge Fund Accounting: Fundamentals of Hedge Fund Accounting (Basic)
Hedge Fund Accounting: Portfolio Accounting for Hedge Funds (Intermediate)

Education Provider Information

Illumeo, Inc., 75 East Santa Clara St., Suite 1215, San Jose, CA 95113
For more information regarding this course, including complaint and cancellation policies, please contact our offices at (408) 400- 3993 or send an e-mail to .
Course Syllabus
  1:40Introduction to Fundamental of Hedge Fund NAV Accounting
  11:00Overview of Hedge Funds and Concept of NAV Accounting
  6:54Investment Portfolio Accounting
  20:19Accounting for Equities
  15:23Accounting for Bonds
  8:14Portfolio Valuation
  14:55Portfolio Reconciliation
  11:04Fund Fees and Expenses
  4:33Capital Activities
  6:00Nav Calculation
  1:42:30Fundamental of Hedge Fund NAV Accounting
  PDFSlides: Fundamentals of Hedge Fund NAV Accounting
  PDFFundamentals of Hedge Fund NAV Accounting Glossary/ Index