Manages Parisian Family Office. Began Wall Street, 82. Founded investment firm, Native American Advisors. Member, White Earth Chippewa Tribe. Was NYSE/FINRA arb. Conservative. Raised on Native reservations. Pureblood, clot-shot free. In a world elevated on a tech-driven dopamine binge, he trades from Ghost Ranch on the Yellowstone River in MT, his TN farm, Pamelot or CASA TULE', his winter camp in Los Cabos, Mexico. Always been, and will always be, an optimist.

Friday, February 02, 2007


Annual audits of hedge funds are now in full gear. Fund administrators should assist auditors in disclosure of "soft compensation" for their clients so that investors are fully informed about compensation being paid. Administrators might inquire of the hedge fund manager, (especially if trading statements show commissions exceeding $1 or so per futures contract) if the IB or Trading advisor is receiving any type of "soft compensation" back from the clearing broker or its advisors. Then quantify the additional compensation based on the # of contracts, or from a schedule of receipts by the manager, and present it to the auditor in workpaper form for appropriate disclosure to the investors.

This type of compensation is often stealth to auditors. Usually auditors will rely on the trading statements for the clearing brokers. Nowhere is soft comensation paid to the manager or IB disclosed on the monthly trading statement.

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