Mon, Sep 22, 2014
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Alternative Market Briefing

Critical issues in due diligence, part 1: fraud, new regulations deepen investor scrutiny

Thursday, November 07, 2013

Bailey McCann, Opalesque New York:

In this series, we’ll take a deep dive into due diligence issues including difficult to spot fraud, the dangers of groupthink, regulatory changes, and how to conduct more active risk management.

Background

Since 2008, a steady stream of scandal and new regulation has kept both managers and investors on their toes. Many investors caught up in criminal activity like the Madoff Ponzi scheme, Bayou bankruptcy, or just old fashioned unanticipated losses such as Amaranth or MF Global, are taking a harder look at their investments going forward. Regulators too are asking managers to do more, and provide more. Together, these forces have moved independent due diligence and risk professionals into the spotlight. Once confined to quarterly or even annual reports compiled from pre-established questionnaires, due diligence and risk experts are fast becoming key players throughout the lifecycle of an investment.

Industry veterans are now coming to market with new businesses in an effort to help investors sort out the good investments from the bad. Fidelity Institutional just brought an alternatives platform to market that boasts not only access to managers, but access to research and third-party due diligence reports through strategic alliances with leaders in the space -- including CAIS, Goldman Sachs Asset Management (GSAM) and Morningstar –- distinguishing it from other firms that only offer access to alternative produ......................

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. SEC charges 19 investment firms and one trader for breach of Rule 105[more]

    Benedicte Gravrand, Opalesque Geneva: The Securities and Exchange Commission (SEC) started a push to enhance the enforcement of Rule 105 of Regulation M last year to uncover hedge funds and private equity firms that have illegally participated in an offering of a stock after short selling it duri

  2. Fund managers, bullish on Europe, anticipate monetary policy separation of Fed and ECB[more]

    Komfie Manalo, Opalesque Asia: At least 202 fund managers with $556bn of assets under management said that while the European Central Bank (ECB) has eased its monetary policy that sent sentiments towards Europe to pick up, the Fed is expected to hike its rate in the spring of 2015. Investor

  3. Institutions - North Carolina workers call on state pension to dump up to $6bn in hedge funds, UK pension fund criticizes hedge fund fees[more]

    North Carolina workers call on state pension to dump up to $6bn in hedge funds From Forbes.com: The State Employees Association of North Carolina this afternoon called on state Treasurer Janet Cowell to withdraw all investments in hedge funds, which appear to amount to approximately $6 b

  4. News Briefs - Limited partners of investment managers may be subject to self-employment taxes, Just one week left until NYC's Rocktoberfest[more]

    Limited partners of investment managers may be subject to self-employment taxes On September 5, 2014, the Internal Revenue Service (“IRS”) issued Chief Counsel Advice 201436049, concluding that members of an investment manager were subject to self-employment taxes with respect to their e

  5. Institutions - Adviser's faith in hedge funds unshaken by CalPERS' move Advisers weigh in on CalPERS’ decision, Gina Raimondo sees no reason to follow California’s lead, exit hedge funds, Danish pension funds step up 'alternative investments'[more]

    Adviser's faith in hedge funds unshaken by CalPERS' move From WSJ.com: Financial advisers who use hedge funds in their clients' portfolios say they aren't rethinking that approach after a huge California pension fund announced plans to exit the hedge-fund market. The decision by the Cali