| abstract
| - The Black Lion Fund is a private hedge fund which is generally available by invitation only, and to a tightly-knit group of investors. The fund is purported to be a low risk tolerance fund, but is only open to institutional and accredited investors. The fund is characterized by its unique approach of combining the characteristics of an investment bank and a mutual fund into one entity, which invests in "bankable" private equities with a minimum of a 20% target return on investment and takes them public via IPO, for immediate portfolio gains. The unusual "Black Lion Model" was conceived by the 15th Lord Holydean in 2006 and assumed the name "Black Lion Fund" in 2008. Distinguising Characteristics of the fund include: 1. Independent portfolio management 2. Fund Manager's decisions subject to portfolio manager firm 3. Numerous independent deal makers and outsourcing 4. Specialists to select and underwrite each specific IPO to "bankable" standards 5. Each project must yield a minimum of 20% ROI 6. Each project must have two other exit strategies with an 18 month timeframe 7. Principals must invest their own funds 8. Presence of a "Chinese wall" between deal makers & underwriters, like an investment bank 9. Automatic market support with IPO's from independent portfolio management firms 10. Use of Lloyd's and other hedging techniques on asset-backed IPO's 11. Projects within the portfolio are encouraged to intermingle and synergize as much as possible 12. Outsourcing used as much as possible to keep all companies quick, lightweight, and easy to debt service 13. All projects are approved by the Manager company's board, where investors are represented. 14. Complete disclosure, square deals only, and in-house compliance staff with outsourced PCAOB-grade audits 15. All projects are asset-backed [1] Disadvantages: In the United States, in order for an investment fund to be exempt from direct regulation, it must be open to accredited investors only and only a limited number of investors can belong to it. While there is no legal definition of "hedge fund" under U.S. securities laws and regulations, typically they include any investment fund that, because of an exemption from the types of regulation that otherwise apply to mutual funds, brokerage firms or investment advisers can invest in more complex and more risky investments than a public fund might. Hedge funds managed from other countries have similar relationships with their national regulators. As a hedge fund's investment activities are therefore limited only by the contracts governing the particular fund, it can make greater use of complex investment strategies such as short selling, entering into futures, swaps and other derivative contracts and leverage. As their name implies, hedge funds often seek to offset potential losses in the principal markets they invest in by hedging their investments using a variety of methods, most notably short selling. However, the term "hedge fund" has come in modern parlance to be applied to many funds that do not actually hedge their investments, and in particular to funds using short selling and other "hedging" methods to increase risk, and therefore return, rather than reduce it. Hedge funds have acquired a reputation for secrecy. Being outside the regulatory regime that applies to retail funds greatly reduces the information a hedge fund is legally required to make public. Additionally, divulging trading methods and positions would compromise the business interests of many types of hedge fund, tending to limit the information they want to release.[2][3]
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