Bertrand Fry Speaks to Hedge Fund Law Report About Implications of Allowing Employees to Invest in a Hedge Fund Manager’s Funds
Partner Bertrand Fry, Co-Chair of Pryor Cashman’s Investment Management Group, was recently interviewed by The Hedge Fund Law Report for its article “Are the General Counsel and Chief Compliance Officer of a Hedge Fund Manager Considered ‘Knowledgeable Employees’ of the Manager.”
The article discusses certain benefits to the employees and the manager when employees are allowed to invest in a hedge fund manager’s funds. According to the article, allowing employee investment produces advantages such as:
- Helping a manager grow its assets under management
- Incentivizing employees to act consistently with the best interests of the funds in which they are invested and to work hard to achieve the investment objectives of such funds
- Facilitating alignment of the employees’ interests with those of investors
As Fry pointed out, “Investors find a lot of comfort in knowing that the managers (including their key staff) have their own money at risk in the manager’s funds. The more knowledgeable the employees who have their money at risk, the more contented the manager can make its investors that their interests are aligned.”
To learn more about The Hedge Fund Law Report, please click here.
