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From Kirsten Bischoff, Opalesque New York:
On every level within the hedge fund industry due diligence has become crucial. From the due diligence processes of investors evaluating managers, to the due diligence processes of managers evaluating service providers and other counterparties, this proactive form of risk management is a vital step in every decision.
As expected, coming out of a financial crisis fraught with poor performance, fraud, and plenty of other hurdles to redeeming investments, investors are not skimping on due diligence methods. They want to know not only how managers fared during the crisis, but what systems they have in place that helped protect them and how they are staying at 'the cutting edge' within their infrastructure setup.
"It was interesting and rather a sad reflection on the industry when we found out who didn't invest in Madoff or didn't have anything to do with Madoff. Deutsche Bank would not lend money to anybody who invested in Madoff, and Caceis would not take a fund that had investment in Madoff," commented Dermot Butler, Chairman of global fund administrator Custom House Group during the most recent Opalesque Roundtable in Singapore
However, we also learned that the tight asset raising environment still means that a lot of managers are simply "ticking boxes" when it comes to...................... To view our full article Click here
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