What is the investment holding applied to hedge funds?
The investment holding is the unit, and the unit holders are the investors who buy units in the fund.
Issuer and market
Hedge funds, like other investment funds, are collective schemes with no legal personality. Their assets are managed by an investment company that exercises all administration and representation functions. The custody and administration of the securities in the fund are the responsibility of the depositary, which also monitors and supervises the management performed by the investment company.
Lastly, the distributor is the body that maintains commercial relations with the unit holders and sells the funds.
The price or market value of the fund is the net asset value, which is calculated at least once per quarter by dividing the total assets in the fund by the number of units in circulation at any given time. In the case of hedge funds, the market value may also be calculated on a half-yearly basis depending on the investments made, although some funds may decide to offer liquidity more frequently, for example once a month.
It is common practice to sell hedge funds in euros. The use of currencies other than the euro implies an additional risk -currency risk - because of possible fluctuations in exchange rates.