Browsing: Due Diligence Process

Due Diligence Process for Private Equity Funds
Due Diligence Process for Hedge Funds

Due Diligence Process

Requiem for a Heavyweight

Dec 2nd, 2019 | Filed under: Due Diligence Process, Newly Added, What about beta?, Risk Management & Operations

By Bill Kelly, CAIA Association CEO A requiem is a solemn chant for the repose of the dead. Chant-worthiness when it comes to the Enron Corporation is still subject to much debate depending, of course, upon which side of that trade you were on as the company slipped into bankruptcyRead More

10 Years Later: Reflections on the Madoff Meltdown

Dec 23rd, 2018 | Filed under: Due Diligence Process, Newly Added, Media Coverage of Hedge Funds, Insolvency, Regulatory Environment, Legislation/Court rulings, Alternative Investments in Context, Business News, The A.I. Industry

It was just about 10 years ago (Dec. 10, 2008) that Bernie Madoff acknowledged to his sons, Mark and Andrew, that he had “absolutely nothing left” of the funds that had been entrusted to him; that the investment fund that bore his name was “just one big lie.” There isRead More

Panayiotis Lambropoulos: The View from a Public Pension Manager’s Office

Nov 11th, 2018 | Filed under: Hedge Fund Operations and Risk Management, Due Diligence Process, Newly Added, Institutional Investing, Alpha Hunters, Risk management, Asset allocation, Asset Allocation Models, Alternative Investments in Context, The A.I. Industry, Institutional Asset Management, Risk Management Strategies & Processes, Hedge Funds, Risk Management & Operations, Allocating to A.I.

On Nov. 13, the 24th Annual National Pension and Institutional Investment Summit convenes in Dallas Texas. CAIA is a sponsor of this event. Panayiotis Lambropoulos, portfolio manager of hedge funds at the Employees Retirement System of Texas, will offer his insights at a panel on emerging hedge fund managers. Lambropoulos’Read More

Whence Corporate Social Responsibility?

Mar 4th, 2018 | Filed under: Due Diligence Process, Newly Added, Socially responsible investing, SRI and Clean Energy, Risk Management & Operations, Other Topics in A.I.

A new scholarly paper, forthcoming in the Journal of Financial Economics, delves into the question whether institutional investors are the driving force behind corporate social economy. I.J. Alexander Dyck and three other scholars looked specifically at the environmental and social performance of firms across 41 countries. They found that ownershipRead 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 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: 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

How Do They Get Those Non-Correlated Returns?

May 30th, 2017 | Filed under: Due Diligence Process, Investing in Commodities, Newly Added, Commodities, Risk Management & Operations

In a recent paper Mark Shore, of Shore Capital Management, has discussed overlaying of strategies in managed futures, saying that it is something he covers in his course on managed futures at DePaul, but that in general it “is not discussed as much as it should be.” Behind that question,Read More

Risk Management Isn’t Just Fund Selection

Apr 27th, 2017 | Filed under: Private Equity, Due Diligence Process, Newly Added, Private Investments, Risk Management & Operations

New Strategies for Risk Management in Private Equity, a new book from Private Equity International, is an anthology of papers on the titular subject. It is edited by Dr. Ivan Herger to offer investors in PE new perspectives on the field. Herger, a managing director at Capital Dynamics, has aRead More

Brexit and Derivatives: Allen & Overy’s Views

May 1st, 2016 | Filed under: Due Diligence Process, Newly Added, Regulatory Environment, The A.I. Industry, Risk Management & Operations

A decision by the United Kingdom to leave the European Union could be a bad thing for the derivatives markets. But from a legal standpoint there isn’t a lot that can be done about it in advance, and the existing Master Agreement for derivatives needs no change. Those are theRead More

AIMA’s Guide to the Bamboo Bridge of Operations

Feb 15th, 2016 | Filed under: Due Diligence Process, Newly Added, Regulatory Environment, Operations, The A.I. 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

After Seven Years: Philosophical Implications of the Madoff Fraud

Dec 30th, 2015 | Filed under: Derivatives, Due Diligence Process, Newly Added, Operations, Equity-linked Structured Products, Personalities in AI, Risk Management & Operations

It has been seven years and a few days more now since Bernard Madoff acknowledged to authorities that “there is no innocent explanation” for the story they had just heard from his sons. It has been 15 and a half years since Harry Markopoulos ran the numbers regarding Madoff’s performanceRead 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

MMIF Reporting: An Ongoing Challenge for Fund Administrators

Aug 5th, 2015 | Filed under: Hedge Fund Industry Trends, Hedge Fund Regulation, Due Diligence Process, UCITs

Guest columnist Shane Brett discusses a new RR Donnelley survey on the MMIF challenges facing fund administrators.Read More

DRC: Finding Red Flags in the ADVs

Jan 24th, 2013 | Filed under: Due Diligence Process

Fifty-eight percent of the pension investment consultants included in a recent report have one or another sort of red flag in their present or their past: many of them because they run their business in a way that generates conflicts that ought to be of concern to pension plan sponsors.Read More