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: August 11, 2023
3 Reviews (20 ratings)


Anonymous Author
The instructor apparently has a very intimate knowledge of the subject due to being an insider within accounting function of a hedge fund. There are lots of definitions and Dr-Cr examples. Gives a very good overview of what to expect working as NAV accountant. They do like to hire CPAs and can definitely afford to pay them well!

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.

Anonymous Author
Great introduction into the concept of fund accounting.

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
Company: Illumeo, Inc., 75 East Santa Clara St., Suite 1215, San Jose, CA 95113
Contact: 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 .
Instructor for this course
Course Syllabus
  Introduction to Fundamental of Hedge Fund NAV Accounting1:40
  Overview of Hedge Funds and Concept of NAV Accounting11:00
  Investment Portfolio Accounting6:54
  Accounting for Equities20:19
  Accounting for Bonds15:23
  Portfolio Valuation8:14
  Portfolio Reconciliation14:55
  Fund Fees and Expenses11:04
  Capital Activities4:33
  Nav Calculation6:00
  Fundamental of Hedge Fund NAV Accounting1:42:30
  Slides: Fundamentals of Hedge Fund NAV AccountingPDF
  Fundamentals of Hedge Fund NAV Accounting Glossary/ IndexPDF