Getting good value

The most critical factor in calculating the NAV of hedge funds ' or indeed any fund ' is the accurate valuation of the underlying assets. For traditional mutual funds and unit trusts, which, for the most part, are long only investing in liquid securities, listed on major exchanges, this is a relatively simple matter, as indeed it is for a major market long/short hedge fund ' you tap into Bloomberg and the computer does the rest. But life is not always that simple. Problems can occur when investing in funds of funds, illiquid securities or the more esoteric derivatives, which can be diffic...