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How do I record a change in value in a hedge fund

I am invested in a hedge fund that provides quarterly reports and does not provide underlying pricing for the securities it holds.

The only post I found that addresses this is https://community.quicken.com/discussion/7619066/qmac-how-do-i-track-a-private-investment-fund which said.

"But from the standpoint of just keeping track of how well the fund is doing, you can just make it a $1 per share fund. When you make purchases, you show them in Quicken as BUY transactions (at $1 per share). When you find out that the fund value has increased from, say, $220 to $240 at the end of a quarter, then you show that in Quicken as a REINV DIV transaction of $20 at $1 per share. Doing this should allow Quicken to track the value and calculate ROI, etc.I created it as a $1 per "share" fund (i.e., if I bought $100 worth of the hedge fund, I show 100 shares of it). "

The $1 per share makes sense because that allows you to have a stable price if you buy more in the future. The REINV DIV is OK, if it goes up in value. But how what entry do you make if it goes down in value.

Or is there a better practice? For venture funds where you contract to put a certain amount of money in, that case was answered at https://www.quicken.com/blog/investments-planning-tips/how-eric-dunn-uses-quicken.

But I haven't found a satisfactory solution to the hedge fund issue. Any help would be greatly appreciated.

Answers

  • Hello @sroberts231

    Thank you for reaching out on the community and telling us about your issue. I do apologize for the issue you're having, I'm wondering here how exactly you're having them put in. It would help us a bit here if we were to get some screenshots they'll help us figure the best way to assist. I'll leave an article down below on how to do so.

    https://community.quicken.com/discussion/7867159/faq-how-do-i-post-a-screenshot-in-the-community-from-windows#latest

     Once you've had a chance let us know more and we'll see what we can do! 

    Thanks,

    Quicken Francisco


  • sroberts231
    sroberts231 Member
    Francisco:

    See attached example. $250k invested in the hedge fund and created as a $1 per share investment. No additional money invested. If the value goes up, the suggestion in the Quicken post I referenced said create a REINV DIV transaction to show the increase in value (even though, of course, no dividend has been paid). This works if the value increases, but what if the underlying securities the fund is invested in go down? How do you reflect it? See the attached screen capture.
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