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: Decathlon Capital On Revenue-Based Alternative Lending

Oct 30 2017 | 3:49pm ET

The explosion in private credit activity since the end of the financial crisis is...

Lifestyle

CFA Institute To Add Computer Science To Exam Curriculum

May 24 2017 | 9:25pm ET

Starting in 2019, financial industry executives sitting for the coveted Chartered...

Guest Contributor

CAIS: How Technology is Disrupting the Alternative Investment Industry

Nov 7 2017 | 5:35pm ET

If there’s one thing that alternative investment professionals can agree on, it...