survey tells investors to change due diligence focus to back office process as much as investment strategy
An alarmingly high number of hedge funds fail because of operational issues rather than investment risk, according to a recent hedge fund study. Carried out by financial services consultancy Capco, the study of 100 hedge fund failures over the past 20 years found 50% come from operational risk rather than bad investment decisions. The finding has important implications for investor due diligence, which has traditionally focused on management, suggesting an equal weighting should be put on back-office systems. There are around 6,000 hedge funds worldwide with an estimated E600bn...
To continue reading this article...
Join Professional Adviser for free
- Unlimited access to real-time news, industry insights and market intelligence
- Stay ahead of the curve with spotlights on emerging trends and technologies
- Receive breaking news stories straight to your inbox in the daily newsletters
- Make smart business decisions with the latest developments in regulation, investing retirement and protection
- Members-only access to the editor’s weekly Friday commentary
- Be the first to hear about our events and awards programmes