A Hedge Fund Adviser is the manager or adviser of a Hedge Fund that makes investment decisions for a hedge fund. In most cases the adviser is not a person, but rather is an advisory firm or company. United States based domestic hedge funds are typically set up as limited partnerships with each investor being a limited partner with no control, discretion or voting rights in the limited partnership.

Hedge Fund Managers are regulated by the Investment Advisers Act of 1940 which was established by the United States Securities and Exchange Commission (“SEC”). Some advisers are able to qualify for an exemption while others must register with the SEC.  Even if the Adviser is exempt under the federal SEC regulations, the adviser might not qualify for an exemption under the state securities regulations where the adviser’s office is located, and therefore, the adviser would have to register with that particular state. 

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