Due Diligence Comes To The Fore For Euro. Hedge Investors

Oct 30 2012 | 3:41pm ET

The most important investors in hedge funds can't get enough of due diligence.

European institutions are overwhelmingly focused on due diligence, according to a Deutsche Bank survey. Two-thirds say they take between three and six months to do due diligence on a manager, twice as long as the process took nine years ago. And the businesses that serve institutions, consultants and funds of funds, are responding: 80% of the former and 73% of the latter now have dedicated due-diligence teams in place.

"Institutions have embraced hedge funds as a source of positive, risk-adjusted returns, and this runs hand-in-hand with a greater focus on control and compliance," Deutsche Bank's European prime brokerage chief, Daniel Caplan, said.

"Investors have a rigorous toolkit of evaluation techniques and hedge funds have responded by vastly increasing transparency and access."


In Depth

Q&A: Quad Advisors’ Borish Is Looking For Real Traders, Not Index Huggers

Aug 20 2014 | 1:43pm ET

Peter Borish, who served as founding partner and director of research at Tudor Investment...

Lifestyle

Viking Manager In Rent Dispute

Aug 11 2014 | 4:14am ET

A hedge fund manager is demanding most of his money back from his former landlord...

Guest Contributor

Majority Of Inflows Go To Brand Name Hedge Funds

Aug 12 2014 | 9:00am ET

Since the market correction of 2008, a vast majority of hedge fund net asset flows...

 

Editor's Note

 

Futures Magazine

PREVIEW July/August 2014 Cover

Inside Futures' 500th Issue

The July/August 2014 issue is our largest in years—filled with the best trading strategies and stories from 43 years of being the primary publication for commodity, stock, options and forex traders.

The Alpha Pages

TAP July/August 2014 Cover

Real talk on alternative investments, business & finance

The Alpha Pages Editor's Note