Necessary operational due diligence

FEATURE: OPERATIONAL RISK

This second article of three on hedge funds' operational risks proposes a pragmatic approach to conduct operational due diligence to understand why some hedge funds are potentially more exposed to support a well-informed investment process. Based on top-down assessment of the likelihood of operational events occurring within hedge funds, we also investigate the important costs associated with such a systematic and repeatable process. Objectives and LimitationsBy their very nature, hedge fund