Doing the due diligence detective work

Fri Dec 3, 2010

Ask the questions and then trust your gut instinct, say the authors of Greenwich Roundtable White Paper

By Niki Natarajan

As more and more investors are thinking that investing directly will save them money, few stop to consider the true value of their investment of time and energy: is it really worth it? Funds of hedge funds continue to get bad press but what few of the nay sayers fail to recognise is that what the good ones offer just in terms of due diligence – if you were to break it down into cost per hour – would be a bargain.

Eighteen months ago professional due diligence was estimated to cost between $50,000 and $100,000 per manager, and now that more and more time is being spent on due diligence and follow up due diligence post the initial investments, these costs are unlikely to fall.

There is an alarming trend, however, which some of the best fund of hedge funds managers are starting to find; namely...

ISSN: 2151-1845 / CDC10004H

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