New Jersey Administrative Code › Title 17 - TREASURY - GENERAL › Chapter 16 - RULES OF THE STATE INVESTMENT COUNCIL › Subchapter 100 - ABSOLUTE RETURN STRATEGY INVESTMENTS › Section 17:16-100.1 - Definitions

Current through Register Vol. 56, No. 14, July 15, 2024
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.