Liquidity Funds

Liquidity Funds


I advise a private fund that meets the definition of both a liquidity fund and a hedge fund. Am I required to report that private fund as both a liquidity fund and a hedge fund?

Yes. The definitions of a liquidity fund and a hedge fund are not mutually exclusive and, as a result, certain private funds may meet the definition of both. See Glossary of Terms. For such a private fund, you should include it in the calculation of hedge fund assets under management and liquidity fund assets under management and complete each section applicable to hedge funds and liquidity funds. For example, a filer that qualifies as both a large hedge fund adviser and a large liquidity fund adviser would report information on a private fund that meets the definition of a liquidity fund and a hedge fund in sections 1, 2, and 3.