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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 25, 2021

Prerequisites

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.
Useful Course reference: Hedge Fund Accounting: Fundamentals of Hedge Fund Accounting (Basic)

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 Syllabus
INTRODUCTION AND OVERVIEW
  5:00Introduction to Hedge Fund Accounting: Portfolio Accounting for Hedge Funds (Intermediate)
  15:01Related Concepts & Terminologies
EQUITIES AND BONDS
  10:49Accounting for Equities
  9:06Accounting for Equities Cont'd
  13:58Accounting for Bonds
  12:10Accounting for Bonds Cont'd
DERIVATIVES CONTRACTS
  13:46Accounting for Futures
  10:30Accounting for Futures Cont'd
  13:37Accounting for Options
  12:39Accounting for Options Cont'd
  12:32Accounting for Forward Contract
CORPORATE ACTIONS, PRICIND AND RECONCILIATION
  19:11Accounting for Corporate Actions
  6:30Portfolio Pricing Process
  13:38Portfolio Reconciliation Process
  4:00Summing Up
CONTINUOUS PLAY
  2:52:28Hedge Fund Accounting: Portfolio Accounting for Hedge Funds (Intermediate)
SUPPORTING MATERIAL
  PDFSlides: Hedge Fund Accounting: Portfolio Accounting for Hedge Funds (Intermediate)
  PDFHedge Fund Accounting: Portfolio Accounting for Hedge Funds (Intermediate) Glossary/ Index
REVIEW AND TEST
  quizREVIEW QUESTIONS
 examFINAL EXAM