•  
• Tweet
•  
•        Print
•  
•         Track Keywords
•  
• 

From Kirsten Bischoff, Opalesque New York:

While not all hedge fund investors have improved their due diligence efforts since the financial crisis unveiled numerous frauds and poor fund management oversight, there is due diligence from within the industry being performed on managers that should contribute to improving oversight.

“We perform due diligence before accepting a client, which generally includes conducting criminal, civil and bankruptcy background checks on the principals and on the Directors of the fund,” said Jorge de Cardenas, Director and cc-founder of administrator Kaufman Rossin Fund Services at a recent Opalesque Roundtable in Miami.

Administrators, who have seen an increase in focus from investors who are looking to learn more about their hedge fund managers, are also finding themselves in the position of stepping up intelligence about their managers, even before they decide whether or not they will work with them.

“When we accept a client, we also want to know who their other service providers are,” says Cardenas. “If they are using reputable service providers we feel more comfortable that they are surrounding themselves with the right team to manage their business diligently. When they are using service providers that do not understand the business, that may be a sign of a problem right up front.”

......................

To view our full article Click here