Fundamentals of Hedge Fund NAV Accounting

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