Due Diligence - Hedge Fund Books

Due Diligence

Due diligence on hedge funds

1. Hedge fund due diligence frameworks

Quantitative vs. qualitative concepts
Unique hedge fund problems
How to cope with short series and transparency issues

2. Hedge fund transparency and indices' implications

Transparency effects on quantified and non-quantified risks
Hedge fund index biases and the reasons of style inconsistency
Index consistency and its effect on due diligence

3. Due diligence structure and associated risks

Quantifiable risks
Non-quantifiable risks
The main due diligence components

4. Due diligence process

The main due diligence components (contd.)
Different sequence options - pros and cons; time tables
Full due diligence algorithm; timing, flags and triggers

5. Trading strategy assessment

Overview of trading strategies
Strategy assessment components
Valuation issues: equity strategies

6. Equity strategy valuation

Indices and derivatives as a hedge
Internal risk management: stop-losses
Net exposure
Concentration limits

7. Event Driven strategy valuation

Merger arbitrage
Special situation
Distressed/high yield
Mutual fund timing

8. Relative Value strategy valuation

Convertible arbitrage
Fixed income arbitrage
MBS/ABS arbitrage
Volatility arbitrage

9. Relative Value strategy valuation (contd.)

Statistical arbitrage
Index arbitrage
Credit arbitrage
Alternative fixed income

10. CTA and Macro strategy valuation

CTA systematic
CTA discretionary
Global Macro
Emerging Markets

11. Credit Financing strategies valuation

Asset backed loans
Mezzanine finance
Regulation D

12. In-house risk management assessment

Risk management frameworks
Internal operations vs. external providers
Discretionary issues

13. Operational risk assessment

Key check points: administrators, custodians, prime brokers
NAV calculation pitfalls
Spotting cross and linked investments
Pro-forma performance

14. Legal issues

Master and feeder funds peculiarities
Offshore registration problems
Close-end funds and redemption issues

15. Behavioral and psychological aspects

Fraud protection: typical signs of fraud
Behavioral observation techniques
Psychological aspects, gestures, and mimicry

16. Free discussions and case studies

Examples of live due diligence reports
Q&A

Home

Training

Due Diligence