As a quick addendum to our last post on the roles and responsibilities of directors, we wanted to give one more example of "prospectus creep". This one is more humorous - until you realize that this is an actual example of current, "best practice" offering memo disclosures. Our ire in this instance is directed firmly at the attorneys who drafted this language, not the manager - if a top tier law firm tells you that this type of language is "standard", then it's hard to argue otherwise.
Handling of Mail
"Mail addressed to the fund and received at its registered office in the Cayman Islands shall be forwarded unopened to the Investment Adviser to be dealt with. None of the Fund, its directors, officers or service providers will bear any responsibility for any delay whatsoever caused in mail reaching the Investment Adviser. In particular, the Directors will not receive, open, or deal directly with mail addressed to the Fund."
Well, thanks guys - that one's really helpful.www.castlehallalternatives.com
Hedge Fund Operational Due Diligence
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