Since 2004 HedgeStar has been a leading provider of valuation and hedge accounting services to the corporate, financial, energy, healthcare, non-profit, and government sectors. Our global clients include public and private corporations, financial entities, commercial real estate trusts, hedge funds, accounting firms, law firms, healthcare organizations, educational institutions, and governmental entities.
Corporations use HedgeStar’s services to track and report their hedge positions and to meet the rapidly changing fair value and hedge accounting requirements in today’s global marketplace. Our corporate clients can track their derivative portfolios on our website to get daily, weekly, monthly, or quarterly mid-market and fair values on a wide range of financial products. HedgeStar also provides hedge accounting advice when corporations enter into hedging relationships or have to make decisions that could affect the effectiveness of existing hedges.
Energy trading is a large global business with billions in notional amount traded among the producers, users of the products, and speculators. Several common commodities make up the energy market such as: coal, gasoline, heating oil, natural gas, crude oil, ethanol, and electricity. Most energy commodities are traded on an exchange using futures contracts or using futures contracts with options.
HedgeStar provides hedge accounting services to entities of all types that utilize the commodities markets to hedge risks. For FASB reporting entities that hedge commodities, HedgeStar provides hedge accounting analytics to measure hedge effectiveness and provides supporting documentation that is required by auditors. HedgeStar also provides on-going analysis and journal entries for hedge accounting clients.
Fair Value Measurements
HedgeStar calculates the fair value as defined under ASC 820 of all types of commodity contracts, including futures, forwards, options, and swaps. To measure fair value, HedgeStar uses methodologies that are vetted and accepted by auditors. Our valuation methods use observable market data in combination with proprietary pricing models to arrive at risk-adjusted fair values as required under ASC 820. HedgeStar analyzes the underlying instrument to verify its asset classification and to decide which methodology is best suited for accurately determining the exit price of each commodity contract.
HedgeStar provides services to the broad spectrum of financial services. From independent valuations of complex, hard-to-value financial instruments (sed by many top 100 accounting firms across the U.S.), to online services for financial institutions for valuations for daily profit and loss, end-of-period financial reporting, and determining the effectiveness of hedging programs.
HedgeStar has a long history of working with healthcare organizations, including local hospitals, hospital systems, and long-term care facilities. We provide derivative valuation and monitoring, investment valuation, debt valuation, and related accounting services to healthcare organizations across the country. HedgeStar is an independent source for transparent valuations that can be used for the purpose of financial reporting.
Governmental entities have been using more complex financial products to meet rapidly changing financial markets, including incorporating the use of derivative contracts to hedge against certain risks. As derivative use increased in the government sector, there was a corresponding increase in the reporting standards for hedging transactions. The Government Accounting Standards Board (“GASB”) Statement No. 53 (“GASB 53”) requires that state and local governments report the fair value of derivatives in their financial statements. HedgeStar helps governmental entities meet the reporting requirements of hedge valuations and accounting, specifically those related to GASB 53.
HedgeStar offers unparalleled expertise for cases involving financial markets, indices, and instruments. From cutting-edge forensic research to critiques of opposing expert analyses, we can help your law firm at each and every phase of the litigation process.
Powered by models that were custom-built to meet the needs of the non-profit markets, HedgeStar values billions of dollars of client swaps every business day. We have extensive experience serving non-profit entities such as endowments and foundations as well as public and private pension funds. Our clients depend on us for accurate ASC 820 fair value measurements. We stay well-informed of ever changing accounting standards and continually update our services and methods to meet the demands on our clients to deliver more transparency in today’s markets.