what’s the solution to this tricky question. as an PE asset manager, we determine suitability for each investor so i chose that.
guess it was about the foundation $2.5 million allocation makes it 25%, violation (5% max limit for a single issue) 5-yr lock up period, illiquidity actually there was one other thing but i can’t remember
so you are saying pension manager? this was a tough quesiton as suitability is in asset manager code.
oh my bad, i can’t really remember that one. sorry
itstoohot Wrote: ------------------------------------------------------- > guess it was about the foundation > $2.5 million allocation makes it 25%, violation > (5% max limit for a single issue) > 5-yr lock up period, illiquidity > actually there was one other thing but i can’t > remember I think this was a different question… i thought it was a 2.5% allocation, not 25%. even so, it was innappropriate because you need 5-7 (not sure if this was the right number) pe investments to be diversified and less than 5% total. as for krock’s question, i said that the invesment manager (not the pension manager) also had to check for suitability.
i remember now, it was for the foundation with $10,000,000 assets and HF minimum was $2.5MM suitability was a huge factor no doubt
wow. then i completely spaced. i thought the pension was a lot larger… fck.
I even dropped “Intergenerational Neutrality” in my justification for it not being appropriate. I.e. future grantees benefited at the expense of current ones.
was the pension really only 10mm?
I also thought about diversification… 25% of pension in Hedge fund is not diversified. Anyone said the same?
it wasn’t for pension, it was for the FF foundation i guess.
i somehow f’d this up and thought it was only 2.5% of the account.
25%… my god. i screwed that up.
That was the foundation questions - the foundation was $10 million
cfasf don’t worry, one thing I learned is you cannot own this b$tch 100% i’m glad that I recovered from the panic attack after I finished writing the first question.
yeah guys—i’m talking about ethics, not foundation IPS. and guess what–we jus thad our compliance meeting this morning, and we have to determine suitability for every client.
well. i got the illiquidity part right. if that’s correct… can’t miss the easy points. so frustrating.
it’s a huge red flag if you don’t determine the suitability for each client, so you must be right on this. Btw what did you guys say for value growth switch? i thought the fund strategy was disclosed in the materials so manager does not have to disclose when he switches from one to the other. I was in the middle and just guessed it to be honest.
switch has to be disclosed in quarterly statements. the actual strategy had actually been disclosed.
ok -1. thx