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From Kirsten Bischoff, Opalesque New York:

Financial fraud tends to profligate during times of prosperity and to be discovered during times of financial turmoil. Such was the case with Madoff, Stanford, Dreier, and much of the fraud that was uncovered during the global financial crisis. Considering the attention span people have had historically, one might assume that over a year later these events and their effects would be fading from focus. But that is not the case. 14 months after the discovery of the Madoff fraud, it is still a major driver of business for the firms that provide due diligence and infrastructure services to the hedge fund industry.

Reporting from the GAIM Ops conference, alternative investment focused blog All About Alpha reports that institutional investors have recognized the trend within the hedge fund industry for embracing due diligence firms and the importance of transparency in this tight asset raising environment.

"NY Mellon's Marina Lewin told the audience here that she is seeing a move toward standardization of due diligence. Although Hannoush (Ontario Teachers' Pension Plan), Fierra (LGT Capital Partners) and Towers (PAAMCO) agreed, they were also quick to point out that due diligence 'is more than checking boxes.'. The trick for due diligence analysts, they said, is to balance the rush toward more ro......................

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