Unit 14

Question 1

Letter of intent timelines

Answer 1

Letter can go out as far as 13 months.

90 day look back (included in 13 months)

Question 2

Private funds

Types of investments - direct and portfolio

Answer 2

Limit the number of investors as to not be called an investment company.

Exempt from state snd federal registration.

3c1 funds - no more than 100 investors and all must be qualified clients.

3c7 - no more then 1,999 investors and all must be qualified PURCHASERS

Direct investments - funds have a 10% or greater interest in voting shares.

Portfolio investments - other stock etc investments.

Question 3

Private funds generally hold their investments for a long tine

Answer 3

Hedge funds typically are actively trading

Question 4

Private liquidity fund

Answer 4

Seeks to generate income

Question 5

Hedge funds

Answer 5

May have a hurdle rate. Incentive paid of over a hurdle return rate

Question 6

UITs

Answer 6

Type of investment company

Passive

No board of directors

Units redeemed by trust