Assets Under Management (not RAUM)

I tried scanning google for this but couldn't find anything meaningful.

How do funds calculate AUM according to US GAAP? Not RAUM which is stated on the ADV, but the classical AUM?

If you had some credible link explaining calculations that would be awesome.

3 Comments
 

This is very basic but I think it covers what you're looking for: http://www.hedgefundfundamentals.com/media_posts/hedge-funds-count-asse…

AUM is equity. It's the value the investors in the fund could pull out if the whole thing liquidated today. Calculating this shouldn't be difficult for most funds; funds holding securities that are non-traded, non-public, or just very illiquid have a bit more work to do and there is a speculative element to calculating the value of those types of assets.

RAUM is total securities managed w/o deducting liabilities, so if a fund were highly levered, RAUM would greatly exceed investor's equity.

 

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