A stunning study released by NYU’s Stern School of Business entitled “Trust and Delegation” finds significant problems with the due diligence reports which are currently heavily relied on by the industry in selecting managers for investment. The authors of the study reviewed a sample of due diligence reports collected from hedge fund managers by a major professional hedge fund [...]
Entries Tagged as 'Due Diligence'
In an effort to curb shorting abuses, the SEC has pried open the window on hedge fund transparency just a tiny crack. With the requirement to report short positions on a Form SH on a weekly basis applicable to certain investment advisers, investors (as well as the public generally) now have a way to know [...]
Thanks to the ERISA requirements, Trustees of pension funds have a higher threshold for the selection of investment managers then the standard investor. Most Trust Deeds will incorporate the regulatory and case law requirements for the review of the investment manager. A sample set of criteria may resemble this: - The manager must be [...]
As the hedge fund and asset management industry matures, asset managers are increasingly looking to acquire pension funds as clients. Conversely, as the industry and its investment strategies have become more known, pension funds are looking to add diversity and Alpha – or positive risk-adjusted returns. Hedge Funds seem to be the answer. It’s not [...]