Browsing: due diligence

Posts Tagged ‘ due diligence ’

Due Diligence Requires Deep Dives into Data

Nov 7th, 2017 | Filed under: Newly Added, Due Diligence Process, Risk Metrics and Measurement, Private Investments, Risk Management & Operations

The data and analysis provider eVestment has issued a new white paper on “enhancing private equity manager selection with deeper data.” PE funds below the top quartile have not materially outperformed the public markets as a matter of history. So for an institutional investor, earning alpha is in large measureRead More


Lazard Research on Smart Beta

Nov 5th, 2017 | Filed under: Newly Added, Due Diligence Process, Financial Economics Theory, Behavioral finance, Smart Beta, Risk Management & Operations, Finance & Economics, Other Topics in A.I.

Jason Williams, senior vice president at Lazard Asset Management, has written a white paper on the “six sins of smart beta.” First: what is smart beta? Academic studies indicate anomalies in the markets that somehow don’t get arbitraged away.  These become identified as “factors” and indexes can be designed soRead More


AIMA’s New Due Diligence Template

Oct 22nd, 2017 | Filed under: Newly Added, Service Providers, Due Diligence Process, Technology, Operations, Partner accounting, Risk Management & Operations

It has been 20 years since the Alternative Investment Management Association published its first due diligence questionnaire, a template designed to standardize the diligence process by which investors decide if a particular management is right for them. Now it has published a new questionnaire/template, covering a broader range of entities/strategies.Read More


Til and Heckinger on Commodity Debacles, Part II

Aug 6th, 2017 | Filed under: Newly Added, Due Diligence Process, Personalities in AI, Risk Management & Operations

A new paper available at SSRN looks at two infamous commodity industry melt-downs: Amaranth and MF Global. It offers a diagnosis of each. The paper is co-authored by Hilary Till, of EDHEC – Risk, and Richard Heckinger, of the Working Group on Financial Markets, Federal Reserve Bank of Chicago. InRead More


When an allocator calls: Best Practices for a CTA’s back office

Mar 9th, 2016 | Filed under: Newly Added, CTA, The A.I. Industry, Investing in Commodities, Hedge Funds, Commodities, Macro and Managed Futures Funds

By Dana Comolli, president, DMAXX LLC Every trader who has tried to raise money knows the drill from investors: yes we want to know about your performance, but also, explain in detail your back office (infrastructure, organization). Most allocators come with pages of checklists and expect the manager to beRead More


AIMA’s Guide to the Bamboo Bridge of Operations

Feb 15th, 2016 | Filed under: Newly Added, The A.I. Industry, Due Diligence Process, Regulatory Environment, Operations, Risk Management Strategies & Processes, Risk Management & Operations

How sturdy can a bamboo bridge be? The front page of a new Guide from The Alternative Investment Management Association consists of a photo of a bamboo bridge, apparently on a beach, as seen from below. That is, this is the view of someone on whom the bridge would fall,Read More


Delaware’s Supreme Court Upholds Smack-down of RBC

Dec 8th, 2015 | Filed under: Newly Added, Due Diligence Process, Risk Management & Operations

Some of the reasoning of the courts seems a bit circular to a layperson. Still, the gist is clear enough. Shareholders were cheated when Rural Metro was sold at a price well below its fair market value, and RBC has both the liability and the deep pockets necessary to make that right. Read More


Due Diligence Idea: Reverse Stultification and Bloat

Nov 5th, 2015 | Filed under: Due Diligence Process, Risk Management & Operations

No one likes those bloated questionnaires. Perhaps twenty-five out of 300 questions are both relevant and important. So, to get better results, customize and re-focus the questions. Read More