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Thursday, March 5, 2009
Caveat Emptor - The Elusive Definition of Hedge Fund Due Diligence
concerning the term due diligence and its frequent use within hedge fund vernacular. Scharfman writes, yet the exact definition in practice seems quite elusive. One need only examine a cross section of due diligence providers to see that a wide range of services are classified, sometimes misleadingly so, by this term. So what exactly are investors buying when they purchase hedge fund due diligence services?
Is it background investigation work?
How about compliance reviews?
What about investment strategy reviews?
Is it a review of operational risks?
For a full overview of his thoughts, visit his original article here.