N.J. Admin. Code § 17:16-100.1
The following words and terms, as used in this subchapter, shall have the following meanings, unless the context clearly indicates otherwise:
"Absolute return strategy" means an investment strategy with the goal of achieving positive returns with less correlation than long-only strategies to traditional performance benchmarks.
"Commingled fund" means all open-end and closed-end pooled investment vehicles. A commingled fund may be organized as a group trust, partnership, limited liability company, corporation, insurance company separate account, or other multiple ownership entity. An investment in a commingled fund may take the form of an investment in the fund or in the trustee, general partner, or other managing member of such fund.
"Commodity trading advisor fund" means a fund trading commodities, currencies and financial futures using mostly trend-following systems but sometimes discretionary/fundamental models.
"Common stock" means shares of stock, other than preferred stock, representing ownership in a corporation or other form of legal entity.
"Convertible debt issue" means a debt obligation of any corporation or other form of legal entity that is convertible into the common stock of the entity.
"Convertible preferred stock" means preferred stock of any corporation or other form of legal entity that is convertible into the common stock of the entity.
"Credit oriented fund" means a fund investing in convertible bond arbitrage, fixed income arbitrage, credit instruments, securities of companies under distress (in bankruptcy or close to bankruptcy), or other similar strategies primarily involving investment in fixed income securities.
"Direct investment" means the purchase of an interest in a company or venture directly by an eligible fund, rather than through an investment vehicle.
"Equity long/short strategy" means holding a combination of long and short positions primarily in publicly traded equities, with a net market exposure less than that of the overall equity market.
"Equity market neutral strategy" means holding a combination of long and short positions primarily in publicly traded equities, with minimal net market exposure to the overall equity market.
"Equity oriented fund" means a fund investing primarily in publicly traded positions employing equity long/short, quantitative, equity market neutral, event driven or other similar strategies.
"Event driven strategy" means merger arbitrage, capital structure arbitrage, relative value, activist or other similar strategies.
"Exchange-traded funds" means funds that invest in underlying securities that track a predetermined index or strategy, a commodity, or a basket of assets, and whose shares can be traded like shares of common stock.
"Funds-of-funds" means funds set up to distribute investments among a selection of fund managers, who in turn invest the capital directly.
"Global macro fund" means a fund investing in top-down, fundamental investments on global price movements in all markets, countries and currencies.
"Multi-strategy fund" means a fund that employs a combination of strategies including strategies employed by credit oriented funds, equity oriented funds, and opportunistic funds.
"Opportunistic fund" means a fund investing in speculative opportunities with high net market exposure across varied markets. Opportunistic funds include global macro funds, commodity trading advisor funds, tail risk hedging funds and funds employing other similar strategies.
"Preferred stock" means shares of stock which provide a dividend that is paid before any dividends are paid to holders of common stock and additional rights above and beyond those conferred by common stock.
"Private placement" means a negotiated sale in which the securities are sold directly to institutional or private investors, rather than through a public offering registered with the U.S. Securities and Exchange Commission or applicable foreign regulatory body. Private placement includes the sale of securities pursuant to Section 4(2), Regulation D, Regulation S, or Rule 144A under the Securities Act of 1933, as amended.
"Quantitative strategy" means the use of mathematical techniques to identify profit opportunities arising from relationships affecting the prices of various securities.
"Separate accounts" means an investment vehicle with a single investor that is unaffiliated with its fund sponsor or manager.
"Tail risk hedging fund" means a fund that hedges the risk that a rare event will significantly and adversely affect the value of an asset or portfolio.
N.J. Admin. Code § 17:16-100.1
See: 38 N.J.R. 2039(a), 38 N.J.R. 3632(a).
Rewrote definition "Absolute return strategy"; in definition "Equity long/short fund" substituted "fund" for "funds" and inserted "primarily"; in definition "Fund-of-funds" substituted "Fund" for "Funds"; in definition "Low volatility funds" substituted "fund" for "funds" two times and inserted "a" following "means"; added definition "Multi-strategy fund"; in definition "Opportunistic fund", substituted "fund" for "funds" two times and inserted "a" preceding "fund".
Amended by R.2008 d.244, effective 8/18/2008.
See: 40 N.J.R. 2099(a), 40 N.J.R. 4828(a).
Added definitions "Commingled fund", "Commodity trading advisor fund", "Common stocks", "Credit oriented fund", "Direct investment", "Equity market neutral strategy", "Equity oriented fund", "Event driven strategy", "Exchange-traded funds", "Global macro fund" and "Preferred stocks"; substituted definition "Equity long/short strategy" for definition "Equity long/short fund"; in definition "Equity long/short strategy", deleted "a fund primarily" following "means" and inserted "primarily"; substituted definition "Funds-of-funds" for definition "Fund-of-funds"; in definition "Funds-of-funds", substituted "funds" for "a fund"; deleted definition "Low volatility fund"; in definition "Multi-strategy fund", substituted "including credit oriented strategies," for "used by" and "oriented strategies, and opportunistic similar strategies" for "long/short funds, opportunistic funds and low volatility funds"; in definition "Opportunistic fund", inserted the last sentence; and in definition "Separate accounts", inserted "or 'managed accounts'".
Amended by R.2011 d.126, effective 4/18/2011.
See: 42 N.J.R. 2937(a), 43 N.J.R. 1041(a).
In definition "Equity oriented fund", inserted "quantitative,"; in definition "Opportunistic fund", inserted ", tail risk hedging funds"; and added definitions "Quantitative strategy" and "Tail risk hedging fund".
Amended by R.2014 d.038, effective 3/3/2014.
See: 45 N.J.R. 1477(a), 46 N.J.R. 442(a).
Rewrote definitions "Commingled fund", "Exchange-traded funds", "Multi-strategy fund", and "Separate accounts"; substituted definitions "Common stock" and "Preferred stock" for definitions "Common stocks" and "Preferred stocks", in definition "Common stock", substituted "means" for "shall mean" and "stock" for "stocks", and inserted "or other form of legal entity"; in definition "Preferred stock", substituted "means" for "shall mean", deleted "specific" preceding "dividend"; and added definitions "Convertible debt issue", "Convertible preferred stock", and "Private placement".