Back Office & Operations Technology & Risk Management

Madoff skews investor due diligence focus, study finds


A new study from Corgentum Consulting found that as a result of recent frauds and Ponzi schemes, a "Madoff effect" has developed, altering the nature and scope of investor due diligence.

Corgentum, a hedge fund operational due diligence firm, found that in anticipation of stricter hedge fund regulation, funds of hedge funds are focusing the bulk of their due diligence efforts on legal, compliance and regulatory risks. The study collected information from more than 200 global hedge funds, endowments, foundations, corporate pensions, family offices, large independent financial advisory practices, ultra high-net-worth investors and private banking organisations.

The focus on