Browsing: due diligence

Posts Tagged ‘ due diligence ’

Culture Eats Sharpe Ratios for Breakfast

Apr 25th, 2021 | Filed under: Due Diligence Process, Newly Added, What about beta?, Risk Metrics and Measurement, The Alts Industry, Risk Management & Operations

By John Bowman, CFA, Senior Managing Director, CAIA Association This article was originally posted on FundFire on March 24, 2021. Alternative fund manager due diligence has an execution problem. The evidence is mounting that investors, managers, and consultants agree the typical fund vetting process overlooks increasingly important qualitative factors thatRead More


The Art of Due Diligence, Part II: The Good News for Emerging Managers

Mar 2nd, 2021 | Filed under: Due Diligence Process, Newly Added, Asset Managers, Operations, Institutional Asset Management, Risk Management Strategies & Processes, Risk Management & Operations

By Keith Black, PhD, CFA, CAIA, FDP, Managing Director, Content Strategy, CAIA Association, and Mark S. Rzepczynski, PhD, CEO, AMPHI Research and Trading Managing alternative assets is especially competitive for small and emerging managers. At the end of 2020, HFR data shows that the private hedge fund industry had $3.6Read More


The Art of Due Diligence, Part I: The Story Beyond the Numbers

Feb 25th, 2021 | Filed under: Hedge Fund Operations and Risk Management, Due Diligence Process, Newly Added, Operations, Risk Management Strategies & Processes, Hedge Funds, Private Investments, Risk Management & Operations

By Keith Black, PhD, CFA, CAIA, FDP, Managing Director, Content Strategy, CAIA Association and Mark S. Rzepczynski, PhD, Founding Partner and CEO, AMPHI Research and Trading Given the reliance on quantitative analysis in asset allocation, some investors may be tempted to continue with a numerical approach when filling their assetRead More


The Often-Forgotten Art and Science of Manager Due Diligence

Jan 10th, 2021 | Filed under: Due Diligence Process, Newly Added, Risk Management & Operations

By Shana Sissel, CAIA – Chief Investment Officer of Spotlight Asset Group For almost two decades I have worked in roles that were heavily focused on investment manager due diligence across asset classes and legal structures. I began my career in due diligence-focused on the world of hedge funds. HedgeRead More


Our Commitment to Better Due Diligence in Alts

Dec 7th, 2020 | Filed under: Newly Added

In a year that’s lacked so much of what makes our global CAIA community special—namely, the in-person gatherings of local chapters and the knowledge sharing that takes place at our bigger events around the world—we strived to continue to engage our membership, gleaning their expert insights and exchanging the bestRead More


SOS

Jul 1st, 2019 | Filed under: Retail Investing, Newly Added, Institutional Investing, Asset allocation, What about beta?, Asset Allocation Models, Alternative Investments in Context, Institutional Asset Management, Allocating to Alts, Other Topics in Alts

By Bill Kelly, CEO, CAIA Association Ask someone of a certain generation to name the most common worldwide distress signal, and they will likely come back with SOS. No surprise then that this same signal, borne from the Morse code, turns 111 years old on this date in history. MostRead More


Due Diligence Requires Deep Dives into Data

Nov 7th, 2017 | Filed under: Due Diligence Process, Newly Added, 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: Due Diligence Process, Financial Economics Theory, Newly Added, Behavioral finance, Smart Beta, Risk Management & Operations, Finance & Economics, Other Topics in Alts

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: Service Providers, Due Diligence Process, Newly Added, 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: Due Diligence Process, Newly Added, 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: CTA, Investing in Commodities, Newly Added, The Alts Industry, Macro and Managed Futures Funds, Hedge Funds, Commodities

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: Due Diligence Process, Newly Added, Regulatory Environment, Operations, The Alts Industry, 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: Due Diligence Process, Newly Added, 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