Investment

Side Pocket

A separate account or sub-fund used by investment funds, especially hedge funds, to isolate illiquid or hard-to-value assets from the main portfolio, ensuring fair allocation of profits and losses among investors.

Quick answer: A separate account or sub-fund used by investment funds, especially hedge funds, to isolate illiquid or hard-to-value assets from the main portfolio, ensuring fair allocation of profits and losses among investors.

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Quick answer

A separate account or sub-fund used by investment funds, especially hedge funds, to isolate illiquid or hard-to-value assets from the main portfolio, ensuring fair allocation of profits and losses among investors.

Why it matters

Side Pocket matters because it supports clear communication in Investment contexts for Financial Analysts, Bankers, and Traders. It also connects to aviation training and exam language such as CFA, ACCA, and FRM.

Editorial context

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Questions and answers

Questions and answers

What is Side Pocket?

In this glossary, Side Pocket refers to: A separate account or sub-fund used by investment funds, especially hedge funds, to isolate illiquid or hard-to-value assets from the main portfolio, ensuring fair allocation of profits and losses among investors.

How is Side Pocket used in finance?

In finance communication, this term appears in contexts such as: "El fondo creó un side pocket para separar la deuda ilíquida del fondo principal."

Why does Side Pocket matter in finance?

Side Pocket matters because it supports clear communication in Investment contexts for Financial Analysts, Bankers, and Traders. It also connects to aviation training and exam language such as CFA, ACCA, and FRM.

Who uses Side Pocket?

Side Pocket is mainly used by Financial Analysts, Bankers, and Traders.

What category does Side Pocket belong to?

In this glossary, Side Pocket is grouped under Investment. Related pages in this category explain adjacent procedures, commands and operational concepts.

Where does this definition come from?

This definition is sourced from CFA Institute, IFRS Foundation, FASB (GAAP), Basel III Framework and published by Protermify Finance as a static finance reference page.

Definition

A separate account or sub-fund used by investment funds, especially hedge funds, to isolate illiquid or hard-to-value assets from the main portfolio, ensuring fair allocation of profits and losses among investors.

Operational example

The fund created a side pocket to separate the illiquid distressed debt from the main investment pool to protect ongoing investors.

Localized term

Side Pocket

Localized example

El fondo creó un side pocket para separar la deuda ilíquida del fondo principal.

Definition language

English reference definition

Source

CFA Institute, IFRS Foundation, FASB (GAAP), Basel III Framework

Category

Investment

Exam relevance

  • CFA
  • ACCA
  • FRM

Target audience

  • Financial Analysts
  • Bankers
  • Traders

Related terms

Use the related links below to continue through connected finance terminology.

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