475 fund
Encyclopedia
A section 475 fund is a hedge fund
that elects to mark to market all its unrealized gains and losses, as allowed by the provisions of section 475(f) of the Internal Revenue Code
. This can lead to a much faster recognition of gain, but also lessens the tax fees due to the high cost of performing the appropriate analysis for a non-475 fund.
Hedge fund
A hedge fund is a private pool of capital actively managed by an investment adviser. Hedge funds are only open for investment to a limited number of accredited or qualified investors who meet criteria set by regulators. These investors can be institutions, such as pension funds, university...
that elects to mark to market all its unrealized gains and losses, as allowed by the provisions of section 475(f) of the Internal Revenue Code
Internal Revenue Code
The Internal Revenue Code is the domestic portion of Federal statutory tax law in the United States, published in various volumes of the United States Statutes at Large, and separately as Title 26 of the United States Code...
. This can lead to a much faster recognition of gain, but also lessens the tax fees due to the high cost of performing the appropriate analysis for a non-475 fund.