Hedge Funds Editing and Proofreading Services

Hedge fund documents are unusual in that the audience is small, sophisticated and extremely well informed about how these documents are normally written. An allocator reading an offering memorandum knows exactly which clauses are standard, which are aggressive, and which are missing. They read the risk factors to see what the manager has thought about, the fee terms to see what the manager thinks they are worth, and the valuation policy to see whether they would trust the reported numbers in a stressed month. Nothing here is read casually.

We edit what hedge fund managers and their advisers produce — private placement and offering memoranda, limited partnership agreements and subscription documents, investment management agreements and side letters, due diligence questionnaires and consultant responses, monthly and quarterly investor letters, pitchbooks and strategy overviews, valuation policies and pricing committee documentation, risk management and liquidity frameworks, operational due diligence responses, compliance manuals and personal account dealing policies, business continuity and key person documentation, and regulatory filings and investor notices. Our editors check that the strategy described in the marketing matches the strategy permitted by the documents, since divergence there is what an operational due diligence reviewer is specifically hunting for.

The valuation policy is the document that decides whether a sophisticated allocator can trust anything else you report, and it is where a great many managers are casually vague. If the strategy touches anything that is not exchange-traded, the allocator wants to know precisely how those positions are marked. We write these so the hierarchy of pricing sources is stated in order with the conditions under which the next source is used, so the treatment of positions with a single broker quote is explicit, so the pricing committee's composition is given along with the independence of its members from the investment team, so the process for overriding a price is documented with who may do it and what record is made, and so any use of side pockets is described with the trigger and the investor consequence. Managers sometimes fear that this level of detail invites scrutiny. It does the opposite: the funds that write it plainly are the ones that pass operational due diligence without a second round.

Everything you send is treated in strict confidence, including positions, investor lists and documents in draft. We are editors rather than lawyers, accountants or investment professionals, and nothing here is legal, tax or investment advice — your counsel and compliance function must approve investor material. What we can do is make the documents precise, internally consistent and credible to the readers assessing you.