Hedge fund operational due diligence since 2009.

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REVIEWING PUBLIC INFORMATION

Conducting Due Diligence also means Reviewing Public Information on a Fund Manager

Due Diligence using Public Information and Social Media:

Conducting fund manager due diligence means that one should conduct relevant, reasonable, and often extensive diligence procedures, which include not only reviewing private documentation that is requested of a fund manager, but also reviewing publicly available information on a fund manager by conducting easily accessible media and public website searches. This is an important part of the due diligence process that sometimes gets over looked by due diligence teams, because these teams are labeled “operational due diligence” and are often solely hired to focus on middle and back office operations or perform a one time static operational risk review, instead of also including ongoing web and media monitoring into their program.

The label “Operational due diligence” is a long way of saying “Due Diligence”, to differentiate the attention away from investment strategy assessments and portfolio management credentials, and towards overall business risk.  The Operational Due Diligence portion of manager analysis should include vetting the numbers, reviewing the business, and assessing the middle and back office operations including information technology and regulatory compliance.  It is important not to miss the information available on the world wide web through media, social media, and regulatory websites.

Hedge Fund and Private Equity Fund Operational Due Diligence

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