Massive Hedge Fund Corporation: Canadian Market Investment Analysis

This report provides an analysis of the Canadian market for Massive Hedge Fund Corporation, focusing on investment opportunities and the potential for growth. The study examines various aspects, including government intervention in funding processes, the regulation of the funding sector, and the liability concerns related to capital investments. The report highlights the growth potential of the hedge fund business in Canada, emphasizing that the market presents significant opportunities for returns if investments are substantial. The analysis delves into the specifics of hedge funds as an alternative investment plan, the role of the Canadian government in investment policies, and the regulations governing the sector, particularly the role of Fund Managers of Canada. Furthermore, the report explores the liabilities associated with hedge funds and provides recommendations for Massive Hedge Funds to invest in the Canadian market, concluding that the market offers substantial profit potential due to less competition and government measures.

Running Head: MASSIVE HEDGE FUND
MASSIVE HEDGE FUND
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Executive Summary:
This study is a brief description of the potential market of Canada as the Massive
Hedge Fund Corporation want to run a funding business in the sector. Thus, the analysis is on
the processes related to the market condition and the new business investment opportunities
in the sector. The research is conducted on some main factors that can lead on to the
government intervention in the funding processes, the regulation of the funding sector, the
growth potentiality of the funding business in Canada and lastly the liability concerns
regarding the capitals invested in the hedge funding process. The study also recommends that
Canada is a growing market of the hedge funding opportunities and the funding process can
bring a good fortune in the returns if the investment is of larger amount.

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Introduction:
The purpose of this research report is to analyse the opportunities and involvement
related to the investment of Massive Hedge Fund in a new business market in Canada. The
report is to study and research on the sharing economy to conduct a feasible study to
determine the viability of investing in a new economic structure, and inform the company
owners if the economy has the potentiality in order to gain profitability for the Massive
Hedge Fund Corporation.
Discussion:
Hedge Fund is an alternative investment plan rather than the mutual fund and other
investment plans. Investors use this strategy to earn more active returns or alpha from their
investments. These funds are aggressively managed to make use of the derivatives related to
the terms and conditions of the funds related to the international and domestic markets tom
generate high returns. Another fact that attracts the investors to invest in the Hedge Fund is it
requires much less SEC regulations to face in order to invest in the plans and get returns from
them.
Government Intervention -
The Government of Canada plays an integral part in the investment policies and the
venture capital policies that are evolved in course of time. The government provides strict
measures in the capital policies to assess the flow of capitals through agencies, and tax
incentives (Chiu & Tsai, 2017). However, the Hedge Funds are less regulated in terms of the
capital policies as the funds are mainly regulated in terms of the specific provinces that are
operated by the hedge fund managers solely (Bédard-Pagé et al., 2016). However, starting a
hedge fund in Canada can be very complex process for the small investors as for the
formation of the private equity funds or traditional LLC processes. The Government of

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Canada has made the regulations very limited for the small investors than the wealthy and
institutional investors.
Regulation of the Sector -
The Hedge Fund sectors are mainly regulated by the Fund Managers of Canada. All it
takes to start a Hedge Fund is about a month of time and some capital ranges to provide
professional fees between 25 thousand to 35 thousand Canadian Dollars. The Fund Managers
are needed to have a certification as a Chartered Investment Manager or a Chartered
Financial Analyst (Chang et al., 2016). Though fund Managers in Canada do not need to have
a specific certification or educational background to operate the Hedge Funds, however they
likely to come across difficulties in order to obtain customers and build assets from the
capitals.
Growth Potentiality -
The Hedge Fund Industry in Canada is considerably smaller than the United States.
However, in the last few years hedge Funds have performed much better in compared to
some United States counterparts. Therefore, the Canadian market can be called as a future for
the Hedge Funds. Hedge Funds are not limited to a specific investment capital, thus it
performs mainly on the capital of the investors, and they embrace some range of investment
related risks in order to get maximum amount of gains from their investments (Strine Jr,
2016).
Liability Concerns -
The liabilities related to the Hedge Funds are very limited to the Fund Managers in
across the Fund Structure. The performance of a capital investment of a Hedge Fund is
entirely depended on the Fund Manager, whereas in the mutual funds the performance of the
capital reflects the condition of the market (Coffee Jr & Palia, 2016). The risk of the capital is

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more than any other funds in this segment, as a result the profit margin is also greater than
mutual funds as well. Hedge Funds are depended on the use of short leverages and selling
strategies that varies upon the tax implications of the structure of the funds (Boon, Briere &
Rigot, 2018).
Recommendations:
This part of the study describes about how a Hedge Fund sector can be regulated in
Canada. The potential growth of the Hedge Funds in Canada is much higher than other
countries as there are less fund corporations are involved and the Government of Canada has
some strict measures regarding the small investments. Therefore, Massive Hedge Funds can
invest in the market with a strong potential that may result them humongous profit within a
short period of time.
Conclusion:
This paper is studied upon the facts of the Hedge Funds related to the market structure
of Canada. This study discusses about the government structures related to the funds, how the
rules and regulations affect the funding process of the Hedge Funds, how the government
controls the investment capitals policies. Finally the research concludes with the concerns
about liabilities of the Hedge Fund process with the investors’ capitals and the dependency on
the performance of the Fund Managers regarding the investment process.

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References:
Bédard-Pagé, G., Demers, A., Tuer, E., & Tremblay, M. (2016). Large Canadian public
pension funds: A financial system perspective. Bank of Canada Financial System
Review, 33-38.
Boon, L. N., Briere, M., & Rigot, S. (2018). Regulation and pension fund risk-taking.
Journal of international money and finance, 84, 23-41.
Chang, B. Y., Januska, M., Kumar, G., & Usche, A. (2016). Monitoring Shadow Banking in
Canada: A Hybrid Approach. Bank of Canada Financial System Review, 23-37.
Chiu, J., & Tsai, K. (2017). Government interventions and equity liquidity in the sub-prime
crisis period: Evidence from the ETF market. International Review of Economics &
Finance, 47, 128-142.
Coffee Jr, J. C., & Palia, D. (2016). The wolf at the door: The impact of hedge fund activism
on corporate governance. Annals of Corporate Governance, 1(1), 1-94.
Strine Jr, L. E. (2016). Who bleeds when the wolves bite: A flesh-and-blood perspective on
hedge fund activism and our strange corporate governance system. Yale LJ, 126,
1870.