AIMA

A trade association of participants in the market for OTC derivates headquartered in New York. It has created a standardised contract (the "ISDA Master Agreement") and a set of definitions (the "ISDA Definitions"), which provide the framework for transaction documents covering swap and derivative transactions (typically interest rate, commodity and foreign exchange rates swaps) between counterparties.

In the US, a person (other than a person registered as an Associated Person of a Futures Commission Merchant) who is engaged in soliciting or in accepting orders for the purchase or sale of any commodity for future delivery on an exchange who is not authorised to accept any money, securities, or property to margin, guarantee, or secure any trades or contracts that result there from.

Often referred to as the Investment Advisor in the United States. The Investment Manager enters into an agreement with the Fund to make investment decisions on its behalf, usually on a discretionary basis, in return for a management fee (based on NAV) and a performance fee (a percentage of NAV appreciation over a given period). The Performance fee is sometimes also referred to as an Incentive fee.

See Eligible investor. See Accredited investor. Investors in hedge funds can be categorised in many ways but the most clear distinction is between fund of hedge funds managers and direct investors: 1. Fund of hedge funds managers: These entities manage diversified portfolios of hedge funds (usually in the form of collective investment schemes), and provide their investors with services such as fund selection and risk management in return for a fee. 2. Direct investors: Hedge funds are aimed primarily at institutional and sophisticated investors. Direct investors include pension funds (public and private), endowments, foundations and family offices.