Sun, Nov 29, 2015
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Alternative Market Briefing

Other Voices: Hedge funds: Consideration of fraud risks in an economic crisis

Thursday, October 01, 2009

The following article was authored by Adam Weisman, Partner, Deloitte Financial Advisory Services LLP and Tania Lynn, Senior Manager, Deloitte & Touche LLP.

Fraud has always represented a dangerous and perhaps dangerously underestimated risk for many companies. For hedge funds and other investment management firms, the threat of fraud is a risk for both the company and for the investors who entrust them to manage their assets. The recent discovery of the alleged fraud committed by Bernard Madoff has been well-publicized, but this is not the only incidence or allegation of fraud involving asset management firms - nor is it likely to be the last. Fraud is not something new or isolated to hedge funds or the asset management industry; however the Madoff fraud has appropriately renewed the focus of investors on the importance of risk management and due diligence in protecting their investments.

Many companies, including those in the asset management industry, are experiencing economic challenges given current market conditions. As conditions deteriorate and economic pressures persist, the incidence of fraud for companies and organizations may increase. Therefore, investors should be proactive in evaluating and assessing the risk management and fraud detection programs that are in place relating to their investments.

The risk of fraud can be mitigated by a system of risk manageme......................

To view our full article Click here

Today's Exclusives Today's Other Voices More Exclusives
Previous Opalesque Exclusives                                  
More Other Voices
Previous Other Voices                                               
Access Alternative Market Briefing

  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. Other Voices: Hedge fund marketing and the selling cycle[more]

    By Bruce Frumerman. How long is the selling cycle now? That’s a question my financial communications and sales marketing consulting firm has been asked on a regular basis by hedge fund firm owners and sales people, ever since we opened the doors to our firm in 1987 pre-crash. Wa

  2. People - Solus Alternative Asset Management adds chief strategist from BTIG[more]

    From Daniel Greenhaus joined hedge fund manager Solus Alternative Asset Management as managing director and chief strategist. He will work closely with Chris Bondy, Solus’ chief economist, managing director and executive vice president, said Chris Pucillo, CEO and chief investmen

  3. Opalesque Roundtable: Seeding deal terms can be onerous for hedge funds[more]

    Benedicte Gravrand, Opalesque Geneva for New Managers: Executives from fund of funds firms, family offices, a placement agent, a private equity firm, and an accounting firm gathered in Connecticut last month for the

  4. Opalesque Roundtable: Family offices flock to co-investment[more]

    Bailey McCann, Opalesque New York: Co-investments have been a hot topic for pension funds in recent years, as they try to move away from high fees and improve transparency. But now, family offices are more readily getting into the mix and establishing in-house deal teams, according to the delega

  5. More institutional investors invest in CTAs compared to last year despite dissatisfaction with performance[more]

    Benedicte Gravrand, Opalesque Geneva: "Despite a strong start to 2015 for CTAs in Q1, commodity market conditions have made return generation difficult for fund managers over much of the rest of the year to date," says Preqin’s November