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EisnerAmper LLP & EisnerAmper Cayman attend GAIM Ops Cayman conference

Nicholas Tsafos and Peter Cogan, Audit Partners in EisnerAmper LLP and Directors of EisnerAmper Global, attended the Global Alternative Investment Management (“GAIM”) Ops Cayman conference on March 6-9 alongside Ben Leung, Managing Partner of EisnerAmper Cayman and Director of EisnerAmper Global.

GAIM was founded in 1994 and soon became the world’s largest international alternative investment event, known for its high intellectual content as well as the range, quality and quantity of the global investors and allocators it attracts. It has been held in Geneva, Monaco, Cannes, and Cayman.

GAIM is the annual global focal point for global investors to learn about the wider industry and the strategic debate within which alternatives operate, and secondly as an objective platform for the most interesting investment themes and best performing funds globally.

Peter, Nick and Ben were joined by other members of the EisnerAmper Cayman team to participate in interactive workshops and discussions.


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GAIM Ops Cayman 2016 Poll Results

The results can be viewed below or a PDF version of the report can be downloaded here: GAIM 2016 Survey Results


In March 2016, EisnerAmper had the opportunity to participate in the annual GAIM Ops Cayman conference, one of the hedge fund industry’s leading operations and compliance events.

This year’s gathering brought together close to 500 operations, due diligence and compliance experts from the alternative investment industry. C-level personnel and fund managers made up the largest percentage of the attendees.

Over the course of the conference, the audience was polled on a variety of topics. The following report details those results.
As you review the responses, we want to offer our own insight to provide a more complete and in-depth look at the findings:

The Evolving Business Model for Hedge Funds
Fifty-five percent of respondents indicated the commingled hedge fund is not an endangered species.
While the commingled fund may not become extinct any time soon, the 2×20 pricing structure is long gone for equity based strategies. The 1.5×20 fee structure has grown in popularity due to pressure from the institutional investment community resulting from underperformance in recent years.

We anticipate that you will find hurdle rates incorporated into the incentive fee structure, wherein a manager must outperform a stated rate of return (e.g., 10-year bond) before the incentive can be taken.

Institutional Investor Perspective
More than 75% of respondents would consider increasing or beginning pursuing opportunities through liquid alternative products.
Liquid alternative mutual funds took off like wildfire from 2012-2014 as the number of new funds grew and AUM ballooned. However, for investors looking to gain access to certain strategies, the daily liquidity requirements for a liquid alternative mutual fund often prohibit certain securities and asset classes being included in the fund. These strategies are only accessible in a traditional commingled hedge fund structure.

More than half of the respondents felt it was important to meet personnel beyond the senior management team during operational due diligence (“ODD”) visits.

Post-Madoff, the role of ODD has grown dramatically. Whether investors are assigning the responsibility internally or outsource it to an ODD firm, managers must make sure their firms are of institutional quality from the front-middle-back office, legal/compliance, and infrastructure perspectives to win allocations.

Eric Snyman, Frank Napolitani, EisnerAmper Cayman


(Click images to enlarge)


What’s New and What’s Changed

Will the hedge fund industry continue to grow in assets or will there be consolidation among managers?

2016 GAIM Survey Results EisnerAmper Cayman

What is the biggest challenge facing managers today?

2016 GAIM Survey Results EisnerAmper Cayman

Where are fees heading over the next couple of years?

EisnerAmper GAIM Ops 2016 Results


Active and Recently Retired Regulators Prepare You for What’s Next

Insider Dealing: Post-Newman, do you believe congressional action to codify “insider trading” would be beneficial?

EisnerAmper GAIM Ops 2016 Results

Cybersecurity and cyber-related crime: Which elements of a cybersecurity program do you find the most difficult to implement?
EisnerAmper GAIM Ops 2016 ResultsOther policy and regulatory developments: Which of the following developments do you identify as the potential biggest threat to the hedge fund industry (Related to politics and regulations)?
EisnerAmper GAIM Ops 2016 Results


Looking at the Future Model of Sustaining, Growing and Innovating

Is the commingled hedge fund an endangered species (and the 2 and 20 fee structure along with it)?

EisnerAmper GAIM Ops 2016 Results

Which investor group(s) represents the most advantageous path for your goals in raising capital?
EisnerAmper GAIM Ops 2016 ResultsShould you increase or start pursuing the opportunity through liquid alternative products?

EisnerAmper GAIM Ops 2016 Results


The Future Partnership with Managers

Who do you expect to win the U.S. Presidential election?

Demands for portfolio and operational transparency have increased dramatically over the last few years. How has your organization reacted to those demands?

EisnerAmper GAIM Ops 2016 Results

Who are the most important people to meet during an operational due diligence visit?

EisnerAmper GAIM Ops 2016 Results

Have you had Basel III-related conversations with your prime brokers?

EisnerAmper GAIM Ops 2016 Results

Is your CCO function outsourced to a third-party compliance consultant?

EisnerAmper GAIM Ops 2016 Results

Latest Publications

Are You a Going Concern?

The rules of US Generally Accepted Accounting Principles (GAAP) are no longer silent on management’s responsibility to evaluate whether there is substantial doubt about an entity’s ability to continue as a going concern and what management should disclose in their financial statements.

In August 2014 the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2014-15, titled Presentation of Financial Statements—Going Concern (Subtopic 205-40): Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern, which provides guidance about management’s responsibilities in this regard.

Guidance has been issued to reduce diversity in timing and content of footnote disclosures. Management need to consider this guidance to produce US GAAP-compliant financial statements.

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Article on FASB’s Accounting Standards Update (ASU) No. 2015-09

EisnerAmper Cayman Ltd. has posted an article with Captive Insight ( and Captive Review (see article here) about the latest FASB ASU No. 2015-09.

Preparers of financial statements need to be aware of the additional disclosure requirements introduced by ASU No. 2015-09, as well as consider the time impact and increased level of detail on reserving and claims data to be compiled in order to enable preparation of financial statements that comply with accounting principles generally accepted in the United States of America (U.S. GAAP).

The article published in Captive Insight can be downloaded through the link below.



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PKF Cayman rebrand and joining EisnerAmper Global

PKF Cayman has rebranded to EisnerAmper Cayman. We have joined with leading US accountancy firm, EisnerAmper LLP and EisnerAmper Ireland, to form a new global network called EisnerAmper Global. Our vision is to be globally recognised as Cayman’s leading corporate professional services firm. Being part of a new global network, EisnerAmper Global, gives our clients access to leading minds and cutting edge services by leveraging the expertise of c. 180 partners and 1500 professionals across Cayman, the US, Ireland and London.

Our soft launch will be on August 17, 2015, details of our public launch will follow soon.

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Are You Caught In The “Offsetting” Net?

The requirements under International Financial Reporting Standards (IFRS) and US generally accepted accounting principles (GAAP) are almost identical and are required when there is netting on the balance sheet, or when there is the ability to net under an enforceable master netting arrangement or similar agreement

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Examining Confidence Levels

Funding at a consistent 70 percent confidence level will allow you to weather the ups and downs without the need to respond abruptly, and gradually accumulate equity.

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Is My Fund an Investment Entity/Company?

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IFRS for Investment Entities

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Avoid 6 Critical Errors When Completing the FAR

The Fund Annual Return (“FAR”) is an electronic form that fund operators must use to provide CIMA with general, operating and financial information about their fund. This electronic document must be completed and filed for every regulated fund, together with a pdf version of the audited financial statements within six (6) months of the reporting entity’s year end. Through our review of FARS submitted to CIMA, we’ve been able to build this list of six tips to common yet critical errors to avoid.


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