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Benedicte Gravrand, Geneva: The managing director of a U.S.-based FoHFs firm has reservations about consultants that investors use for outsourced services such as manager recommendation and monitoring and talked to Opalesque about it. Our source preferred to remain anonymous.

A topic no one has really addressed “A lot of consultants are now in the space of directly selecting hedge fund managers for their clients and monitoring,” our source said. “But if you look at the actual teams in these consulting firms, they have less than a handful of people. I don’t really know how they do it. They generally don’t have a dedicated risk team or an operations and infrastructure team to monitor the managers. They typically have the same person looking at new managers and existing managers.”

“When you actually peak behind the curtain, there is not a whole lot there” “If you look at the average FoFs firms, you will see a staff of anywhere from at least 10 to 60 people. I don’t know how consultants can claim to have the same ability to select and monitor funds that closely with only 2 or 3 or 5 people. I have seen this in all the consultancy firms I have (come across).”

Allegedly, one should be able to see this if one went through the whole list and check how many people the consultancy firms actually have – not what they tell people they have. “I noticed is as they come to do due diligence on us... W......................

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