I manage a hedge fund, and I've done this for one of my clients. The
simplest way to do it is to find out who the custodian or prime broker
is for your hedge fund. Let's assume for example that the hedge fund
you are talking about uses Bear Stearns as a custodian and prime
broker. You would personally open an IRA account with Bear Stearns,
and then direct them to invest that IRA in the hedge fund. Since they
are the custodian for both, it is easier that way.

beliavsky[at]aol.com wrote:
- quote -

B-
I don't know of one, I'd suggest calling the hedge fund and asking the
question, perhaps they've addressed it before. As a general rule hedge
funds bend over backwards to have assets flow in.

One issue is that the hedge fund might generate UBTI. Actually if it
doesn't generate UBTI then it might not offer the putative advantages of
the hedge fund structure (ie use of leverage). I believe the fund would
be responsible for reporting that UBTI on your K-1 but that's beyond my
expertise.

-Tad

I haven't encountered any traditional custodian that will allow one to
invest in hedge funds. However, there are a number of custodians that
permit self-directed IRAs. Basically self-directed IRAs allow you to
invest in almost anything (other than the short list of items that the
tax code specifically says that you can't). You might search the net
for custodians that offer self-directed accounts. Also, you should pay
careful attention to their fees.


Gary Brolis
http://www.mechanicsofmoney.com
http://www.mechanicsofmoney.com/blog.php

My traditional IRA is with Fidelity, and I want to invest part of it in
a hedge fund. The hedge fund is not one of Fidelity's allowed
offerings. They said I should find an IRA custodian who offers the
fund, but I do not know of any.

How does one invest an IRA in an asset that is not on any standard
"menu"? Are there IRA custodians that are "hedge fund friendly"?