How do hedge funds keep track of clients' deposits?

I see all the other answers are only telling you that someone keeps track, without going into the mechanism. And I think that was your real question. If I'm wrong, apologies! :) Anyway. read more

Traditionally, hedge funds collect 2% of their clients' assets to run their operations. So if a rich person or a pension fund puts $100,000 in a hedge fund, then the fund collects $2,000 before it does anything. read more

Big hedge funds are well known, and potential investors call them up. Big investors are well knows, and hedge fund business development staff call them up. Smaller funds and smaller investors have more trouble finding each other. read more

The custodian is beneficial because it allows the hedge fund investors, to know there is some oversight over the assets the hedge fund holds. The custodian also does 95% of the reporting in terms of the clients holdings and its NPV. read more