Hedge Fund Operational Due Diligence Understanding the Risks [Hardcover]

With the various scandals taking place with hedge funds, now more than ever, both financial and operational risks must be examined. Revealing how to effectively detect and evaluate often-overlooked operational risk factors in hedge funds, such as multi-jurisdictional regulatory coordination, organizational nesting, and vaporware, Hedge Fund Operational Due Diligence includes real-world examples drawn from the author's experiences dealing with the operational risks of a global platform of over 80 hedge funds, funds
of hedge funds, private equity, and real estate managers.

Chapter 1. What is Operational Risk?

Brief History.

Modern Definition of Operational Risk in a Hedge Fund Context.

Operational Due Diligence versus Operational Risk.

Key Areas.

External Risks.

Internal Risks.

Fund Terms.

Transparency and Reporting.

Blended Risks.

The Five Themes.

Chapter 2. The Importance of Operational Due Diligence.

Why Should Investors Care About Operational Risk?

Morton's Fork Or A Hobson's Choice?

Outright Fraud Still Exists.

Hedge Fund Fraud Cannot Be Modeled.

Small Discrepancies Add Up.

Lack Of Standardized Regulation.

Each Hedge Fund Is Different.

Ability To Generate An Informational Edge.

Potential To Reduce Losses And Increase Returns.

Considering Operational Risk Factors Presents A Different View Into A Firm.

Common Misconceptions.

Other Considerations: There l#.