The course offers a comprehensive overview of accounting for financial instruments generally traded by hedge funds. This includes accounting for instruments - Equity, Bonds, Futures & Options, Spot & Forward contracts, and processing of Corporate Actions.

The course covers security set up, reference data, market data for portfolio pricing, reconciliation issues, P&L analysis, Trade Workflow, Position Lifecycle maintenance. The course briefly touches upon concepts necessary for a Hedge Fund Accountant to appreciate, to maintain accurate books of records - Tax lot accounting, Cost Basis, Realized and Unrealized Gain/Loss.

Course Key Concepts: Hedge fund, Investment fund, Net Asset Value, Investments, Portfolio accounting, Fund Accounting, investment accounting, Reconciliation, Valuation, Pricing, Equity, Bonds, Dividend, Interest, Loan, Coupon, Options, Futures, Listed, OTC, Derivatives, Forward, Spot, Prime Broker, security master, static data, reference data, market data, Long, short, controller, fund administrator, operations, cash activity, cash reconciliation, Currency, FX, Tax lot, Trial Balance.

Learning Objectives
  • Explore the definition of commonly traded financial instruments - Equity, Bonds, Futures, Options, and Currency Forward contracts.
  • Identify static data related to trade processing - security set up, trade economics, trade settlement.
  • Recognize unique accounting issues - trade booking, processing corporate actions.
  • Discover Cash and Position reconciliation process.
  • Identify and understand P&L reconciliation, identify P&L line items on each security type.
  • Recognize and review some common concepts of portfolio accounting - Tax lot accounting, Inventory Method, Cost basis, Trade date, Settlement date.
Last updated/reviewed: March 19, 2024
6 Reviews (27 ratings)


Member's Profile
A great overview of items to consider in fund accounting. It is a overview so most subjects were covered too quickly. A series covering a subset of these subjects in more detail would be fantastic.

Anonymous Author
It is a good introductory course, though could some of the slides are a little inconsistent with the chronology of teaching the material throughout.

Member's Profile
Very interesting for an accountant and CPA. Enjoyed learning about derivative instruments and more of the finance related topics.

Anonymous Author
The course was good, and gave good information. A couple of the answers in the exam appeared to be worded incorrectly.

Member's Profile
Very good course for beginners who are really interested in derivates and trading in market.

Anonymous Author
Learning objectives were met great course with realistic examples.

Course Complexity: Intermediate

Basic knowledge of what Hedge Funds are, how they work and what is Hedge Fund Accounting all about. Fundamental knowledge of Net Asset Valuation (NAV) concept, essentials of NAV calculation, NAV accounting and reporting process.

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)
Fundamentals of Hedge Fund NAV Accounting

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 .
Course Questions and Answers(4 Questions)
Member's Profile

Hi Rita,
I love your course and it covers lots of topics.
However, may I ask if you have thought about adding topic about swap?
Thank you very much!

Member's Profile

Hi Alvis,
Thank you! Glad to know you found this course useful. Sure, I will work on a short overview of Swap Accounting. Any specific question / issues around swaps would you like me to cover in the course?

Member's Profile

Hi Rita,
Maybe about the types of swap, using one of swap as example (say total return swap) to show us journal entry, and swap reset, etc.
That would be very helpful.
Thank you very much!

Member's Profile

Sure, Thanks for your interest. Watch this space ....:)

Instructor for this course
Course Syllabus
  Introduction to Hedge Fund Accounting: Portfolio Accounting for Hedge Funds (Intermediate)5:00
  Related Concepts & Terminologies15:02
  Accounting for Equities10:56
  Accounting for Equities Cont'd9:06
  Accounting for Bonds13:58
  Accounting for Bonds Cont'd12:10
  Accounting for Futures13:46
  Accounting for Futures Cont'd10:30
  Accounting for Options13:37
  Accounting for Options Cont'd12:39
  Accounting for Forward Contract12:32
  Accounting for Corporate Actions19:11
  Portfolio Pricing Process6:30
  Portfolio Reconciliation Process13:38
  Summing Up4:00
  Hedge Fund Accounting: Portfolio Accounting for Hedge Funds (Intermediate)2:52:32
  Slides: Hedge Fund Accounting: Portfolio Accounting for Hedge Funds (Intermediate)PDF
  Hedge Fund Accounting: Portfolio Accounting for Hedge Funds (Intermediate) Glossary/ IndexPDF