Hedge funds in Canada are often
structured as limited partnerships.
Limited partnerships are either
‘unitized’ (meaning that a limited
partner’s interest is described in terms
of a number of distinct units, which
may be issued in different classes and
series) or use more traditional capital
accounting, depending on the number
of investors, the terms of offering
and back-office systems. Either way, a
limited partnership allows fees to be
charged at the series or investor level,
and allows income or losses to be
allocated most fairly.