Hedge Fund Due Diligence

Hedge Fund Due Diligence Resource

Last month someone sent me this resource on due diligence. Fortis offers this guide to investment due diligence which goes beyond the initial selection process. The article focuses primarily on identifying potential problems by maintaining contact with hedge fund managers and thoroughly looking into the operations.

Although much can be learned from traditional due diligence, Fortis suggests simply talking with the staff and manager. They suggest that a practical understanding of psychology helps detect the underlying factors that could effect a manager’s performance. This article advocates a close relationship with the manager, adding a level of transparency for the investor and includes helpful tips for building this relationship.

Here is the full resource: Fortis Due Diligence Article

Permanent Link: Hedge Fund Due Diligence

Tags: Hedge Fund Due Diligence, Hedge Funds Due Diligence, Due Diligence on Hedge Fund Managers, Investment Manager Due Diligence, Investors due diligence, investor due diligence

Hedge Fund Due Diligence

Hedge Fund Due Diligence Guide

New hedge funds are launched daily, which is constantly increasing the importance of conducting formal hedge fund due diligence and determining which hedge funds are appropriate for you or your firm to invest in becomes increasingly important. Every person or company is going to have different investment horizons, risk tolerances, strategy preferences, etc. so it is usually more valuable to know the basics of how to evaluate a hedge fund then it is to hear someone say which hedge funds are “the best.” I think giving hedge fund recommendations even to the degree of suggesting exactly how to evaluate a hedge fund is too close to finance advice to put online but the SEC website does provide this advice in conducting a minimum level of hedge fund due diligence before investing:

1. Read a fund’s prospectus or offering memorandum and related materials
2. Understand how a fund’s assets are valued
3. Ask questions about fees
4. Understand any limitations on your right to redeem your shares
5. Research the backgrounds of hedge fund managers
6. Don’t be afraid to ask questions

Hedge Funds Due Diligence Articles, Guides & Tools

I have been collecting the hedge fund due diligence resources below over the past 18 months and I’m posting them here in hopes that they will a few people construct a relatively holistic view of what hedge fund due diligence is about along with provide a few example RFPs and tools to use while conducting due diligence on hedge fund managers. This is not an exhaustive list and the information anywhere on this blog or within the linked sites should not be treated as investment advice or a substitute for financial advice of any type. This is simply an aggregation of online hedge fund due diligence resources. I have only listed 21 resources here so far, I hope to make this more robust, if you have something you think should be added here please email me at Richard@RichardCWilson.com.

Hedge Fund Due Diligence Articles

1. Hedge Fund Regulation Corner | Compliance & Law Notes
2. SEC on Hedge Fund Regulation
3. Hedge Fund Risk Analysis
4. Hedge Fund Fraud | SEC & Hedge Funds Fraud Case
5. Hedge Fund Due Diligence Tips
6. The Importance of RFPs in conducting hedge fund due diligence
7. Hedge Fund Manager Due Diligence
8. Due Diligence for High Net Worth Clients
9. Investment Due Diligence
10. Risks of hedge fund investing & portfolio management
11. How long should hedge fund due diligence take?
12. Institutional Hedge Fund Risk Controls
    
13. Hedge Fund Due Diligence Questions
14. Importance of transparency and hedge fund due diligence

Hedge Fund Due Diligence Whitepapers & PowerPoints

1. Whitepaper on Hedge Fund Operational Risk & Transparency
2. Alpha through rigorous hedge fund due diligence
3. In-depth hedge fund risk & due diligence PowerPoint
4. White Paper on Mitigating Operational Risk During Hedge Fund Due Diligence

Hedge Fund Due Diligence Tools

1. Swiss Analystics Hedge Fund Due Diligence Reports
2. FINRA Broker Check
3. Hedge Fund of Fund RFP Example – Used in Institutional Due Diligence Processes
4. HFN’s Guide to Hedge Fund Due Diligence
5. Book on Hedge Fund Due Diligence
6. Fund of Fund Due Diligence

Additional Hedge Fund Guide Sections

1. Hedge Fund Strategy
2. Hedge Fund Marketing
3. Hedge Fund Terms

Articles Related to “Hedge Fund Due Diligence”

1. Guide to Investing
2. Hedge Fund Risk Management
3. Hedge Funds FAQ
4. Request for Proposal

Tags: Hedge Fund Due Diligence, Hedge Funds Due Diligence, Hedge Fund Manager Due Diligence, Hedge Fund RFP, Hedge Fund Operational Due Diligence, Hedge Fund Due Diligence Questionnaire