SEC Releases Stats on Private Fund Management and Trends

The report includes statistics about the distribution of borrowings, an analysis of hedge fund gross notional exposure to net asset value, and a comparison of average hedge fund investor and hedge fund portfolio liquidity.

The SEC’s Division of Investment Management’s Risk and Examinations Office staff prepared the report, which contains information reported from the first calendar quarter of 2013 through the fourth calendar quarter of 2014. The SEC’s staff intends to update the private fund statistics report periodically.

SEC Chair Mary Jo White said:

We believe that investors evaluating investments in private funds will benefit from access to this additional information about the private funds and their advisers. These statistics also should facilitate constructive feedback and additional analysis that could be used by the Commission and others.

In terms of the forms involved in this report, form ADV is used by investment advisers to register with the SEC and/or certain state securities authorities. Advisers must report on Form ADV general information about private funds that they manage, such as basic organizational and operational information, fund size and ownership.

The PF form is filed by SEC-registered investment advisers with at least $150 million in private funds assets under management to report information about the private funds that they manage. Most advisers file Form PF annually to report general information such as the types of private funds advised, each fund’s size, leverage, liquidity and types of investors.

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