By Joe Story
The Hedge Fund Law Report recently had the privilege of discussing Form PF with Samuel K. Won, the Founder & Managing Director of Global Risk Management Advisors, Inc. (GRMA), a preeminent adviser to alternative investment managers and investors on risk management. GRMA has advised major hedge fund managers, institutional investors and regulators on preparation, filing and use of Form PF. In particular, the firm helped shepherd various “first filer” managers – generally, those with more than $5 billion in regulatory assets under management – though the Form PF process, and in doing so observed what first filers did right, and what they did wrong. That firsthand experience has direct bearing on how second and third filers should approach the Form PF process, and how first filers should revise their approaches for the second and subsequent filings.
In this interview, Won shared with The Hedge Fund Law Report some of the lessons learned (and not learned) from the August 2012 initial filing. In particular, Won addressed: the three major operational risks that first filer managers struggled with; the chief categories of risk associated with Form PF; how first filers can improve their infrastructure, processes and controls; what second and third filers should be doing to prepare for their initial Form PF filings; how regulators are likely to use the data obtained from Form PF; how institutional investors plan to use Form PF; allocation of expenses of Form PF preparation; who at a hedge fund manager should be the “point person” for the Form PF process; and more.
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