Tue, Dec 1, 2015
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Opalesque Radio

Operational due diligence: Considerations that can make the process effective
Radio Feature 12: Carlos Ferreira in conversation with Sona Blessing
Thursday, April 28, 2011

radio The role of managing operational risk for a hedge fund or fund of funds continues to pose a challenge - especially, as numerous exogenous factors (such as changes in regulation, taxation, structures etc.) continue to increase the level of uncertainty, complexity and costs. Carlos Ferreira is a Director at PAAMCO's Investment Operations Group and oversees PAAMCO's firm-wide Operational Due Diligence team. In this feature he shares his expertise on the subject, on how managers are coping and the key considerations.

 Download this feature as MP3 (9.64 MB)

Listen to the complete feature
Operational due diligence: Considerations that can make the process effective

Duration: 10:31 


Or listen to selected sub-features
  • Q1 - Key considerations that can make or break an investment
                  Appropriate corporate governance and legal framework.
                  Experienced CFO/COO.
                  Appropriate service providers, including administrator, PB/ custodian, auditor.

    Duration: 4:27 

  • Q2 - What do you see as being the current issues?
                  Adequate programme of compliance to manage increased regulatory complexity and focus.
                  Back office leadership
                  Valuation challenges

    Duration: 3:03 

  • Q3 - How do you believe one should address the issue of: in-sourcing versus out-sourcing of operations?
                  Not all businesses are the same.
                  Scope exists to tailor business according to where the manager is within its lifecycle.
                  However, critical is a business set up that demonstrates a good control environment, which cannot be out sourced.

    Duration: 1:10 

  • Q4 - Looking ahead, what according to you is going to influence and impact the operational due diligence landscape?
                  Numerous exogenous factors are increasing uncertainty, complexity and costs.
                  Global hedge fund regulation (especially in the U.S. and Europe), OTC clearing regulation, tax regulation, etc.
                  At the moment, managers are trying to cope with all of these changes.
    Investors are expecting more at the same time (global expectation of best practice).

    Duration: 1:49 

Radio Link
  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. David Einhorn's hedge fund plunged 5.2% in November, set for 2015 loss[more]

    From Bloomberg.com: David Einhorn’s main hedge fund at Greenlight Capital fell 5.2 percent in November and is poised for only its second losing year in almost two decades. The losses bring the fund’s yearly drop to almost 21 percent, according to an e-mail sent to clients that was obtained by Bloomb

  2. 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

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

    From PIonline.com: 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

  4. Commodities - Stung by oil, distressed-debt traders see worst losses since '08[more]

    From Bloomberg.com: It’s mid-November, but for investors who trade in the debt of distressed companies, the year’s already done -- and they lost. Hedge funds that specialize in the debt are grappling with their worst declines in seven years. Funds managed by Knighthead Capital Management, Candlewood

  5. Regulatory - Major changes in partnership audit procedures contained in 2015 Budget Act[more]

    Contained in the Bipartisan Budget Act of 2015, signed by President Obama on November 2, is a rather complex provision that materially changes how partnerships are audited. Generally effective for tax years beginning after December 31, 2017, the so-called “TEFRA” and “Electing Large Partnership” rul