{"product_id":"practical-operational-due-diligence-on-hedge-funds-isbn-9781119018759","title":"Practical Operational Due Diligence on Hedge Funds","description":"\u003cb\u003eTighten due diligence procedures for more successful hedge fund investment\u003c\/b\u003e  \u003cp\u003e\u003ci\u003ePractical Operational Due Diligence on Hedge Funds\u003c\/i\u003e is an encyclopaedic, comprehensive reference, written from the perspective of an experienced practitioner. Accompanied by a useful archive of factual material on different hedge fund issues, including failures, fines, and closures, this book focuses on the areas due diligence professionals should address, and explains why they're important. Extensive discussion of publicised cases identifies the manager entities and actual fund vehicles involved, and provides commentary on what could have been done differently in each case, backed by actual regulatory materials, such as SEC complaints, that recreate the events that took place. Readers gain a deeper understanding of the many facets of due diligence and the many possible pitfalls, learning how standardise processes and avoid major errors and oversights.\u003c\/p\u003e \u003cp\u003eThe amount of money managed by hedge funds has almost doubled from the $1 trillion under management at the time of the financial crisis. Hedge funds can be extremely risky, but can be extremely profitable — as money increasingly flows back in, due diligence on these alternative investments becomes more and more critical. This book provides complete guidance toward the due diligence process, with plentiful real-world examples.\u003c\/p\u003e \u003cul\u003e \u003cli\u003eIdentify the areas of due diligence and what can go wrong\u003c\/li\u003e \u003cli\u003eCreate procedures and checklists to minimise errors\u003c\/li\u003e \u003cli\u003eLearn what publicised cases could have done differently\u003c\/li\u003e \u003cli\u003eGain a deeper understanding of massive failures and successes\u003c\/li\u003e \u003c\/ul\u003e \u003cp\u003eProper due diligence can be a massive undertaking, but thoroughness is essential when the price of failure is so high. \u003ci\u003ePractical Operational Due Diligence on Hedge Funds\u003c\/i\u003e provides the details professionals need to be on point every time.\u003c\/p\u003e \u003cp\u003ePreface xIiii\u003c\/p\u003e \u003cp\u003eAcknowledgments xlvii\u003c\/p\u003e \u003cp\u003eAbout the Author xlix\u003c\/p\u003e \u003cp\u003eDisclaimer li\u003c\/p\u003e \u003cp\u003e\u003cb\u003ePart I Processes and Procedures\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 1 What is a Hedge Fund? 3\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e1.1 The Role of a Hedge Fund in an Investment Portfolio 5\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 2 Defining Operational Issues 7\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e2.1 Classifying Problems and Failures 8\u003c\/p\u003e \u003cp\u003e2.2 Fraud 8\u003c\/p\u003e \u003cp\u003e2.3 Insolvency and Winding Up 10\u003c\/p\u003e \u003cp\u003e2.4 Investment Losses Outside the Fund’s Stated Volatility Range 10\u003c\/p\u003e \u003cp\u003e2.5 Operational Problems, Fund Defaults and Material Breaches of Contract 11\u003c\/p\u003e \u003cp\u003e2.6 Regulatory Intervention Resulting in a Settlement, Fine or Fund Closure 12\u003c\/p\u003e \u003cp\u003e2.7 What Happens When It All Goes Wrong 12\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 3 Structures for Investment in Alternatives 15\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e3.1 A Quick Primer on Fund Structures 15\u003c\/p\u003e \u003cp\u003e3.2 Limited Companies 17\u003c\/p\u003e \u003cp\u003e3.2.2 Significance of Jurisdiction 18\u003c\/p\u003e \u003cp\u003e3.3 Unit Trusts 19\u003c\/p\u003e \u003cp\u003e3.4 Partnerships 19\u003c\/p\u003e \u003cp\u003e3.5 Managed Accounts 20\u003c\/p\u003e \u003cp\u003e3.6 Master Feeder and Mini Master Structures 21\u003c\/p\u003e \u003cp\u003e3.7 Umbrella Structures 22\u003c\/p\u003e \u003cp\u003e3.8 Ucits 23\u003c\/p\u003e \u003cp\u003e3.9 The Changing Landscape and the Implications for Investors 23\u003c\/p\u003e \u003cp\u003e3.10 Regulatory Arbitrage 23\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 4 Is the Fund for Real? Establishing the Basics 25\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e4.1 Constitutional Documents 25\u003c\/p\u003e \u003cp\u003e4.2 Fund Contracts and the Basics of Contract Reviews 28\u003c\/p\u003e \u003cp\u003e4.3 Service Providers to the Fund 32\u003c\/p\u003e \u003cp\u003e4.4 Manager Visits 46\u003c\/p\u003e \u003cp\u003e4.5 Background Checks 49\u003c\/p\u003e \u003cp\u003e4.6 Initial Questionnaires to Commence Due Diligence Work 50\u003c\/p\u003e \u003cp\u003e4.7 “Generic Risks” in Documents and Contracts 53\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 5 Understanding Fund Operations and Controls 61\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e5.1 Investment Strategies and What They Involve 62\u003c\/p\u003e \u003cp\u003e5.2 Operational Structures Required to Support an Investment Strategy 63\u003c\/p\u003e \u003cp\u003e5.3 Establishing the Existence of Controls 64\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 6 Governance – Managing Risk Through a Non-Executive Board 65\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e6.1 Investor-Nominated Directors 66\u003c\/p\u003e \u003cp\u003e6.2 Managing Risk as a Non-Executive Board 67\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 7 Reporting to Members and Statutory Reporting 75\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e7.1 Statutory Reporting 75\u003c\/p\u003e \u003cp\u003e7.2 Financial Statements 76\u003c\/p\u003e \u003cp\u003e7.3 Designing a Template for Reviewing Financial Statements 81\u003c\/p\u003e \u003cp\u003e7.4 Shareholder Voting: the Automatic Proxy 83\u003c\/p\u003e \u003cp\u003e7.5 Investor Reporting and Transparency 84\u003c\/p\u003e \u003cp\u003e7.6 Conflicts of Interest and Transparency 85\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 8 The Curse of Leverage (Fund Liabilities) 87\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e8.1 Who Provides Finance 88\u003c\/p\u003e \u003cp\u003e8.2 How Financing is Secured 90\u003c\/p\u003e \u003cp\u003e8.3 How Collateral Creates Fund Risk 92\u003c\/p\u003e \u003cp\u003e8.4 Understanding Default Clauses and Covenants 93\u003c\/p\u003e \u003cp\u003e8.5 Collateral Management and the Concept of Margining 95\u003c\/p\u003e \u003cp\u003e8.6 Rehypothecation 97\u003c\/p\u003e \u003cp\u003e8.7 Blow-Ups Due to Leverage 99\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 9 Fund Assets 103\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e9.1 Valuation Concepts 103\u003c\/p\u003e \u003cp\u003e9.2 Designing Principles for Valuations 105\u003c\/p\u003e \u003cp\u003e9.3 Valuations From an Accounting Perspective 108\u003c\/p\u003e \u003cp\u003e9.4 AIMA Recommendations 110\u003c\/p\u003e \u003cp\u003e9.5 Valuing Level 3 Investments and Illiquid Investments 112\u003c\/p\u003e \u003cp\u003e9.6 Valuation Tricks and Discrepancies Including Accounting and Dealing NAVs 113\u003c\/p\u003e \u003cp\u003e9.7 Liquidity 115\u003c\/p\u003e \u003cp\u003e9.8 Style Drift 116\u003c\/p\u003e \u003cp\u003e9.9 The Side Pocket 117\u003c\/p\u003e \u003cp\u003e9.10 Reviewing Derivative Transactions 118\u003c\/p\u003e \u003cp\u003e9.11 Betting the House and Its Contents 119\u003c\/p\u003e \u003cp\u003e9.12 Naked Shorts and Options 120\u003c\/p\u003e \u003cp\u003e9.13 Monthly Reporting and What It Means 122\u003c\/p\u003e \u003cp\u003e9.14 Hedging Currency Risk and Implications for Liquidity 123\u003c\/p\u003e \u003cp\u003e9.15 Realising Fees on a Fund and Deferrals 124\u003c\/p\u003e \u003cp\u003e9.16 The Basics on Taxation of Hedge Funds 126\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 10 Fraud 129\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e10.1 Phantom Funds and Theft 129\u003c\/p\u003e \u003cp\u003e10.2 Ponzi Schemes 130\u003c\/p\u003e \u003cp\u003e10.3 Intentional Misvaluation 131\u003c\/p\u003e \u003cp\u003e10.4 Preferential Treatment 131\u003c\/p\u003e \u003cp\u003e10.5 Misrepresentation\/Misreporting 132\u003c\/p\u003e \u003cp\u003e10.6 The Nick Leeson Syndrome: Rogue Traders 134\u003c\/p\u003e \u003cp\u003e10.7 Covering up Mistakes 136\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 11 Fees: The Essence of Hedge Funds 137\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e11.1 High Water Marks, Hurdles and Claw Back Provisions 138\u003c\/p\u003e \u003cp\u003e11.2 What Does It Cost to Run a Fund? 142\u003c\/p\u003e \u003cp\u003e11.3 Can Investors Pose a Risk to the Survival of a Fund? 144\u003c\/p\u003e \u003cp\u003e11.4 The Gate 145\u003c\/p\u003e \u003cp\u003e11.5 Redemption Terms and Lock-Ups 146\u003c\/p\u003e \u003cp\u003e11.6 Fees on Side Pockets and Illiquids 146\u003c\/p\u003e \u003cp\u003e11.7 The Capital Base of the Fund 147\u003c\/p\u003e \u003cp\u003e11.8 Aligning Interests 147\u003c\/p\u003e \u003cp\u003e11.9 Arrivals and Departures: Fund Dilution, Rebalancing and Box Management 147\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 12 Regulatory Actions, Politics and Market Confidence 149\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e12.1 Characteristics of Successful Complaints and Defences 151\u003c\/p\u003e \u003cp\u003e12.2 The Basics of an SEC Complaint 154\u003c\/p\u003e \u003cp\u003e12.3 Investigations by the UK Financial Conduct Authority 160\u003c\/p\u003e \u003cp\u003e12.4 Large Financial Services Firms vs Small Financial Services Firms 165\u003c\/p\u003e \u003cp\u003e12.5 Managing Electronic Discovery 169\u003c\/p\u003e \u003cp\u003e12.6 Aifmd 170\u003c\/p\u003e \u003cp\u003e12.7 Developments in the Asia Pacific Region 171\u003c\/p\u003e \u003cp\u003e12.8 Investor Protection Through Regulation 171\u003c\/p\u003e \u003cp\u003e12.9 Identifying Future Risks 173\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 13 Key Man Risk, Disaster Recovery and Business Continuity 175\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e13.1 The House of Cards – Disaster Recovery or Business Continuity 176\u003c\/p\u003e \u003cp\u003e13.2 Whose Information Is It Anyway? 177\u003c\/p\u003e \u003cp\u003e13.3 Insurance 178\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 14 Negotiating Terms and Exercising Rights 181\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e14.1 The Subscription Document 181\u003c\/p\u003e \u003cp\u003e14.2 The Necessity for Side Agreements 182\u003c\/p\u003e \u003cp\u003e14.3 The Implications of Side Agreements 185\u003c\/p\u003e \u003cp\u003e14.4 Things to Consider 187\u003c\/p\u003e \u003cp\u003e14.5 Exercising Shareholder Rights 191\u003c\/p\u003e \u003cp\u003e14.6 Taking Over the Management of the Fund 192\u003c\/p\u003e \u003cp\u003e14.7 Exiting or Redeeming From a Fund 193\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 15 Risk Ratings and Scoring 195\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e15.1 Scoring: Temptations and Dangers 196\u003c\/p\u003e \u003cp\u003e15.2 Risk Mapping and SOX Controls 197\u003c\/p\u003e \u003cp\u003e15.3 A Template for Scoring a Hedge Fund 200\u003c\/p\u003e \u003cp\u003e15.4 External Rating Agencies 221\u003c\/p\u003e \u003cp\u003e15.5 Outsourcing Due Diligence by Funds of Funds and Institutions 222\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 16 Marketing to Investors 229\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e16.1 What the Prospectus Does Not Say 229\u003c\/p\u003e \u003cp\u003e16.2 Does Operational Risk Really Matter? 231\u003c\/p\u003e \u003cp\u003e16.3 Marketing as a Differentiating Factor 232\u003c\/p\u003e \u003cp\u003e16.4 Career Risk Management 233\u003c\/p\u003e \u003cp\u003e16.5 Investment Selection Processes – the Deceptiveness of the Power of Veto and Overriding Controls 235\u003c\/p\u003e \u003cp\u003e\u003cb\u003ePart II Case Studies\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 17 Case Studies Pre- 2000 239\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e17.1 Fleschner Becker Associates 242\u003c\/p\u003e \u003cp\u003e17.2 D.E. Shaw \u0026amp; Co LP 244\u003c\/p\u003e \u003cp\u003e17.3 Askin Capital Management L.P. 247\u003c\/p\u003e \u003cp\u003e17.4 Guarente-Harrington Associates 250\u003c\/p\u003e \u003cp\u003e17.5 Hubshman Management Corp 253\u003c\/p\u003e \u003cp\u003e17.6 Investor Overseas Services Limited 253\u003c\/p\u003e \u003cp\u003e17.7 Long-Term Capital Management L.P. 256\u003c\/p\u003e \u003cp\u003e17.8 Niederhoffer Investments Inc\/NCZ Commodities Inc 259\u003c\/p\u003e \u003cp\u003e17.9 Odey Asset Management Ltd 260\u003c\/p\u003e \u003cp\u003e17.10 Omega Advisors Inc 261\u003c\/p\u003e \u003cp\u003e17.11 Pharos Capital Management LP 265\u003c\/p\u003e \u003cp\u003e17.12 Piper Capital Management Inc 266\u003c\/p\u003e \u003cp\u003e17.13 Steadman Security Corporation 268\u003c\/p\u003e \u003cp\u003e17.14 Steinhardt Management Company Inc 270\u003c\/p\u003e \u003cp\u003e17.15 Takara Asset Management Corporation 273\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 18 Case Studies 2000 275\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e18.1 Ashbury Capital Management LLC 275\u003c\/p\u003e \u003cp\u003e18.2 Laser Advisers Inc 276\u003c\/p\u003e \u003cp\u003e18.3 Manhattan Capital Management, Inc 277\u003c\/p\u003e \u003cp\u003e18.4 Maricopa International Investment Corporation 279\u003c\/p\u003e \u003cp\u003e18.5 Penta Investment Advisers Ltd 280\u003c\/p\u003e \u003cp\u003e18.6 Soros Fund Management LLC 282\u003c\/p\u003e \u003cp\u003e18.7 Tiger Management Corp 283\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 19 Case Studies 2001 285\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e19.1 E Thomas Jung and E Thomas Jung Partners Ltd 285\u003c\/p\u003e \u003cp\u003e19.2 Marque Millennium Group, Inc. 286\u003c\/p\u003e \u003cp\u003e19.2.1 Reference Article 286\u003c\/p\u003e \u003cp\u003e19.2.2 Background 286\u003c\/p\u003e \u003cp\u003e19.2.3 Observations 287\u003c\/p\u003e \u003cp\u003e19.3 Heartland Advisors Inc 287\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 20 Case Studies 2002 289\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e20.1 Beacon Hill Asset Management LLC 289\u003c\/p\u003e \u003cp\u003e20.2 Integral Investment Management LP 290\u003c\/p\u003e \u003cp\u003e20.3 Klesch \u0026amp; Co Limited 292\u003c\/p\u003e \u003cp\u003e20.4 Orca Funds Inc 293\u003c\/p\u003e \u003cp\u003e20.5 Trout Trading Management Company Ltd 294\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 21 Case Studies 2003 297\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e21.1 Cptr Llc 297\u003c\/p\u003e \u003cp\u003e21.2 Canary Investment Management LLC 299\u003c\/p\u003e \u003cp\u003e21.3 Eifuku Investment Management Limited 303\u003c\/p\u003e \u003cp\u003e21.4 J.T. Investment Group Inc and New Resource Investment Group INC 304\u003c\/p\u003e \u003cp\u003e21.5 Lancer Management Group LLC and Lancer Management Group II LLC 305\u003c\/p\u003e \u003cp\u003e21.6 Lipper Holdings, LLC 308\u003c\/p\u003e \u003cp\u003e21.7 Millennium Capital Group LLC 310\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 22 Case Studies 2004 313\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e22.1 Dobbins Offshore Capital LLC 313\u003c\/p\u003e \u003cp\u003e22.2 Fountainhead Asset Management LLC 314\u003c\/p\u003e \u003cp\u003e22.3 LF Global Investments LLC 316\u003c\/p\u003e \u003cp\u003e22.4 Nextra Investment Management SGR 317\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 23 Case Studies 2005 319\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e23.1 Creedon Keller \u0026amp; Partners 319\u003c\/p\u003e \u003cp\u003e23.2 Aman Capital Management Pte LTD 320\u003c\/p\u003e \u003cp\u003e23.3 Applegate Investments 322\u003c\/p\u003e \u003cp\u003e23.4 Amerindo Investment Advisors Inc 322\u003c\/p\u003e \u003cp\u003e23.5 Lake Dow Capital, LLC 324\u003c\/p\u003e \u003cp\u003e23.6 Bailey Coates Asset Management LLP 325\u003c\/p\u003e \u003cp\u003e23.7 Bayou Management LLC 325\u003c\/p\u003e \u003cp\u003e23.8 AJR Capital Inc and Century Maxim Fund Inc. 327\u003c\/p\u003e \u003cp\u003e23.9 Durus Capital Management LLC 328\u003c\/p\u003e \u003cp\u003e23.10 Entrust Capital Management Inc 331\u003c\/p\u003e \u003cp\u003e23.11 EPG Capital Management Inc 331\u003c\/p\u003e \u003cp\u003e23.12 HMC International, LLC 333\u003c\/p\u003e \u003cp\u003e23.13 K.L. Group LLC, KL Florida LLC \u0026amp; KL Triangulum Management LLC 334\u003c\/p\u003e \u003cp\u003e23.14 Hunter Capital Management LP 335\u003c\/p\u003e \u003cp\u003e23.15 Linuxor Asset Management LLC 336\u003c\/p\u003e \u003cp\u003e23.16 Lyceum Capital LP 338\u003c\/p\u003e \u003cp\u003e23.17 Marin Capital Partners LLC 339\u003c\/p\u003e \u003cp\u003e23.18 Millennium Management LLC 339\u003c\/p\u003e \u003cp\u003e23.19 Norshield Asset Management (Canada) Ltd 341\u003c\/p\u003e \u003cp\u003e23.20 Philadelphia Alternative Asset Management Company LLC 344\u003c\/p\u003e \u003cp\u003e23.21 Phoenix Kapitaldienst GMBH 345\u003c\/p\u003e \u003cp\u003e23.22 Pippin Investments 347\u003c\/p\u003e \u003cp\u003e23.23 Portus Alternative Asset Management Inc 348\u003c\/p\u003e \u003cp\u003e23.24 Refco Inc. 350\u003c\/p\u003e \u003cp\u003e23.25 Springer Investment Management Inc 351\u003c\/p\u003e \u003cp\u003e23.26 Tenet Asset Management LLC 353\u003c\/p\u003e \u003cp\u003e23.27 Melhado, Flynn \u0026amp; Associates Inc 354\u003c\/p\u003e \u003cp\u003e23.28 Veras Investment Partners LLC 356\u003c\/p\u003e \u003cp\u003e23.29 Wood River Capital Management LLC 357\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 24 Case Studies 2006 359\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e24.1 Amaranth Advisors LLC 359\u003c\/p\u003e \u003cp\u003e24.2 Archeus Capital Management LLC 370\u003c\/p\u003e \u003cp\u003e24.3 Benchmark Asset Management – UK 372\u003c\/p\u003e \u003cp\u003e24.4 Capitalworks Investment Partners, LLC 373\u003c\/p\u003e \u003cp\u003e24.5 CMG-Capital Management Group Holding Company, LLC 374\u003c\/p\u003e \u003cp\u003e24.6 Directors Financial Group Ltd 376\u003c\/p\u003e \u003cp\u003e24.7 Endeavour Funds Management Limited 378\u003c\/p\u003e \u003cp\u003e24.8 Global Crown Capital LLC and J\u0026amp;C Global Securities Investments LLC 379\u003c\/p\u003e \u003cp\u003e24.9 GLG Partners Inc 381\u003c\/p\u003e \u003cp\u003e24.10 International Management Associates LLC 385\u003c\/p\u003e \u003cp\u003e24.11 Brummer \u0026amp; Partners 386\u003c\/p\u003e \u003cp\u003e24.12 Manchester Trading LLC 387\u003c\/p\u003e \u003cp\u003e24.13 Motherrock LP 388\u003c\/p\u003e \u003cp\u003e24.14 Langley Capital LLC 389\u003c\/p\u003e \u003cp\u003e24.15 RCG Capital Advisors LLC 391\u003c\/p\u003e \u003cp\u003e24.16 Samaritan Asset Management Services Inc 392\u003c\/p\u003e \u003cp\u003e24.17 Seaforth Meridian Advisors LLC 394\u003c\/p\u003e \u003cp\u003e24.18 Plusfunds Group Inc 396\u003c\/p\u003e \u003cp\u003e24.19 Spinner Asset Management LLC 398\u003c\/p\u003e \u003cp\u003e24.20 Viper Capital Management LLC and Compass Fund Management LLC 399\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 25 Cases Studies 2007 401\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e25.1 Absolute Capital Group Ltd 401\u003c\/p\u003e \u003cp\u003e25.2 Absolute Capital Management Ltd 404\u003c\/p\u003e \u003cp\u003e25.3 Aragon Capital Management LLC 409\u003c\/p\u003e \u003cp\u003e25.4 AXA Investment Managers Inc 410\u003c\/p\u003e \u003cp\u003e25.5 Basis Capital Funds Management Ltd 412\u003c\/p\u003e \u003cp\u003e25.6 Beacon Rock Capital, LLC 415\u003c\/p\u003e \u003cp\u003e25.7 Bear Stearns Asset Management Inc 416\u003c\/p\u003e \u003cp\u003e25.8 Cambridge Place Investment Management LLP 419\u003c\/p\u003e \u003cp\u003e25.9 Cheyne Capital Management (UK) LLP 420\u003c\/p\u003e \u003cp\u003e25.10 Clarion Management LLC 422\u003c\/p\u003e \u003cp\u003e25.11 Cooper Hill Partners LLC 424\u003c\/p\u003e \u003cp\u003e25.12 DSJ International Resources Ltd (Chelsey Capital) 424\u003c\/p\u003e \u003cp\u003e25.13 Evercrest Capital (PTY) Ltd 425\u003c\/p\u003e \u003cp\u003e25.14 Forsyth Partners Ltd 426\u003c\/p\u003e \u003cp\u003e25.15 Braddock Financial Corporation 428\u003c\/p\u003e \u003cp\u003e25.16 Geronimo Financial Asset Management LLC 429\u003c\/p\u003e \u003cp\u003e25.17 Goldlink Capital Asset Management Limited 429\u003c\/p\u003e \u003cp\u003e25.18 Caribbean Commodities Ltd 431\u003c\/p\u003e \u003cp\u003e25.19 Haidar Capital Management LLC 433\u003c\/p\u003e \u003cp\u003e25.20 Lake Shore Asset Management Ltd 434\u003c\/p\u003e \u003cp\u003e25.21 Lydia Capital LLC 436\u003c\/p\u003e \u003cp\u003e25.22 Bear Stearns \u0026amp; Co Inc 438\u003c\/p\u003e \u003cp\u003e25.23 MDL Capital Management Inc 440\u003c\/p\u003e \u003cp\u003e25.24 Mercurius Capital Management Limited 442\u003c\/p\u003e \u003cp\u003e25.25 Goldman Sachs Group Inc 445\u003c\/p\u003e \u003cp\u003e25.26 ODDO and CIE\/ODDO Asset Management 446\u003c\/p\u003e \u003cp\u003e25.27 Eiger Capital Limited 447\u003c\/p\u003e \u003cp\u003e25.28 Sachsen LB 449\u003c\/p\u003e \u003cp\u003e25.29 BNP Paribas SA 450\u003c\/p\u003e \u003cp\u003e25.30 Pirate Capital LLC 451\u003c\/p\u003e \u003cp\u003e25.31 Quattro Global Capital LLC 452\u003c\/p\u003e \u003cp\u003e25.32 IKB Credit Asset Management GmbH 453\u003c\/p\u003e \u003cp\u003e25.33 Ritchie Capital Management LLC 455\u003c\/p\u003e \u003cp\u003e25.34 Rubicon Fund Management LLP 458\u003c\/p\u003e \u003cp\u003e25.35 Sentinel Management Group Inc 459\u003c\/p\u003e \u003cp\u003e25.36 Sowood Capital Management LP 462\u003c\/p\u003e \u003cp\u003e25.37 Stratix Asset Management LLC 464\u003c\/p\u003e \u003cp\u003e25.38 Synapse Investment Management LLP 465\u003c\/p\u003e \u003cp\u003e25.39 TPG-Axon Capital Management LP 466\u003c\/p\u003e \u003cp\u003e25.40 Tribeca Global Management LLC 467\u003c\/p\u003e \u003cp\u003e25.41 Dillon Read Capital Management LLC 468\u003c\/p\u003e \u003cp\u003e25.42 UBS Securities LLC 469\u003c\/p\u003e \u003cp\u003e25.43 Union Investment Asset Management Holding AG 471\u003c\/p\u003e \u003cp\u003e25.44 United Capital Markets Holdings Inc 472\u003c\/p\u003e \u003cp\u003e25.45 Wharton Asset Management GB Ltd 473\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 26 Case Studies 2008 475\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e26.1 Citigroup Global Markets Inc MAT\/ASTA Funds 475\u003c\/p\u003e \u003cp\u003e26.2 Gabriel Capital Corporation 477\u003c\/p\u003e \u003cp\u003e26.3 Blue River Asset Management LLC 481\u003c\/p\u003e \u003cp\u003e26.4 Bluebay Asset Management PLC 484\u003c\/p\u003e \u003cp\u003e26.5 Carlyle Investment Management LLC 486\u003c\/p\u003e \u003cp\u003e26.6 Centaurus Capital Ltd 488\u003c\/p\u003e \u003cp\u003e26.7 1861 Capital Management LLC 489\u003c\/p\u003e \u003cp\u003e26.8 Andor Capital Management LLC 490\u003c\/p\u003e \u003cp\u003e26.9 Ceres Capital Partners LLC 491\u003c\/p\u003e \u003cp\u003e26.10 Citadel LLC 493\u003c\/p\u003e \u003cp\u003e26.11 Coadum Advisers Inc \u0026amp; Mansell Capital Partners III LLC 495\u003c\/p\u003e \u003cp\u003e26.12 Cornerstone Quantitative Investment Group Inc 496\u003c\/p\u003e \u003cp\u003e26.13 Citigroup Capital Markets Inc – CSO Partners Fund 497\u003c\/p\u003e \u003cp\u003e26.14 Dalton Strategic Partnership LLP 498\u003c\/p\u003e \u003cp\u003e26.15 D.B. Zwirn \u0026amp; Co. L.P. 499\u003c\/p\u003e \u003cp\u003e26.16 Deephaven Capital Management LLC and Knight Capital Group 502\u003c\/p\u003e \u003cp\u003e26.17 Drake Capital Management LLC 503\u003c\/p\u003e \u003cp\u003e26.18 Dreier LLP 505\u003c\/p\u003e \u003cp\u003e26.19 Endeavour Capital LLP 506\u003c\/p\u003e \u003cp\u003e26.20 Epic Capital Management Inc 507\u003c\/p\u003e \u003cp\u003e26.21 Deltaone Capital Partners Corp 508\u003c\/p\u003e \u003cp\u003e26.22 Citigroup Alternative Investments LLC 510\u003c\/p\u003e \u003cp\u003e26.23 Fairfield Greenwich Advisors LLC 511\u003c\/p\u003e \u003cp\u003e26.24 Focus Capital Investors LLC 512\u003c\/p\u003e \u003cp\u003e26.25 Fortress Investment Group LLC 513\u003c\/p\u003e \u003cp\u003e26.26 Front Street Capital Corporation 515\u003c\/p\u003e \u003cp\u003e26.27 Global Opportunities (GO) Capital Asset Management B.V. 517\u003c\/p\u003e \u003cp\u003e26.28 Barclays Bank PLC 518\u003c\/p\u003e \u003cp\u003e26.29 Gordian Knot Ltd 520\u003c\/p\u003e \u003cp\u003e26.30 Gradient Capital Partners LLP 523\u003c\/p\u003e \u003cp\u003e26.31 Headstart Advisers Limited 525\u003c\/p\u003e \u003cp\u003e26.32 Heritage Wealth Management Inc 526\u003c\/p\u003e \u003cp\u003e26.33 Highland Capital Management LP 528\u003c\/p\u003e \u003cp\u003e26.34 ING (NZ) Limited 529\u003c\/p\u003e \u003cp\u003e26.35 Insana Capital Partners LP 531\u003c\/p\u003e \u003cp\u003e26.36 Lahde Capital Management LLC 532\u003c\/p\u003e \u003cp\u003e26.37 Lawrence Asset Management LP 533\u003c\/p\u003e \u003cp\u003e26.38 Libertyview Capital Management Inc 535\u003c\/p\u003e \u003cp\u003e26.39 London Diversified Fund Management LLP 539\u003c\/p\u003e \u003cp\u003e26.40 UBS Third Party Management Company S.A. and Access Partners S.A. 537\u003c\/p\u003e \u003cp\u003e26.41 Tremont Group Holdings Inc 539\u003c\/p\u003e \u003cp\u003e26.42 Bernard L. Madoff Investment Securities LLC 540\u003c\/p\u003e \u003cp\u003e26.43 Kingate Management Ltd 543\u003c\/p\u003e \u003cp\u003e26.44 Manhasset Capital Management LLC 544\u003c\/p\u003e \u003cp\u003e26.45 Maxam Capital Management LLC 545\u003c\/p\u003e \u003cp\u003e26.46 MKM Longboat Capital Advisors LLP 546\u003c\/p\u003e \u003cp\u003e26.47 Morgan Asset Management Inc 547\u003c\/p\u003e \u003cp\u003e26.48 Oak Group Inc 549\u003c\/p\u003e \u003cp\u003e26.49 Okumus Capital LLC 550\u003c\/p\u003e \u003cp\u003e26.50 Citigroup Inc – Old Lane Partners LP 551\u003c\/p\u003e \u003cp\u003e26.51 Banco Santander SA 552\u003c\/p\u003e \u003cp\u003e26.52 Ore Hill Partners LLC 554\u003c\/p\u003e \u003cp\u003e26.53 Ospraie Management LLC 555\u003c\/p\u003e \u003cp\u003e26.54 Pardus Capital Management LP 556\u003c\/p\u003e \u003cp\u003e26.55 Parkcentral Capital Management LP 557\u003c\/p\u003e \u003cp\u003e26.56 Peloton Partners LLP 558\u003c\/p\u003e \u003cp\u003e26.57 Pentagon Capital Management PLC 560\u003c\/p\u003e \u003cp\u003e26.58 Platinum Grove Asset Management LP 562\u003c\/p\u003e \u003cp\u003e26.59 Polar Capital LLP 564\u003c\/p\u003e \u003cp\u003e26.60 Polygon Investment Partners LLP 565\u003c\/p\u003e \u003cp\u003e26.61 Powe Capital Management LLP 568\u003c\/p\u003e \u003cp\u003e26.62 Quantek Asset Management LLC 569\u003c\/p\u003e \u003cp\u003e26.63 Regan \u0026amp; Company 572\u003c\/p\u003e \u003cp\u003e26.64 Rockwater Municipal Advisors LLC 573\u003c\/p\u003e \u003cp\u003e26.65 Deutsche Bank AG 575\u003c\/p\u003e \u003cp\u003e26.66 Rumson Capital LLC 576\u003c\/p\u003e \u003cp\u003e26.67 Russell Capital Inc 577\u003c\/p\u003e \u003cp\u003e26.68 Windmill Management LLC 580\u003c\/p\u003e \u003cp\u003e26.69 Sailfish Capital Partners LLC 581\u003c\/p\u003e \u003cp\u003e26.70 Salida Capital LP 582\u003c\/p\u003e \u003cp\u003e26.71 Satellite Asset Management LP 584\u003c\/p\u003e \u003cp\u003e26.72 Sextant Capital Management Inc 585\u003c\/p\u003e \u003cp\u003e26.73 Standard Chartered Bank plc 586\u003c\/p\u003e \u003cp\u003e26.74 Stone \u0026amp; Youngberg LLC 588\u003c\/p\u003e \u003cp\u003e26.75 Galloway Capital Management LLC 589\u003c\/p\u003e \u003cp\u003e26.76 Tantallon Capital Advisors Pte Ltd 590\u003c\/p\u003e \u003cp\u003e26.77 Tequesta Capital Advisors LP 592\u003c\/p\u003e \u003cp\u003e26.78 Toscafund Asset Management LLP 593\u003c\/p\u003e \u003cp\u003e26.79 JO Hambro Capital Management Ltd 594\u003c\/p\u003e \u003cp\u003e26.80 Turnberry Capital Management LP 595\u003c\/p\u003e \u003cp\u003e26.81 First Republic Investment Management Inc 596\u003c\/p\u003e \u003cp\u003e26.82 Webb Asset Management Canada Inc 597\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 27 Case Studies 2009 601\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e27.1 Scoop Management Inc \u0026amp; Scoop Capital LLC 601\u003c\/p\u003e \u003cp\u003e27.2 Asenqua Inc 603\u003c\/p\u003e \u003cp\u003e27.3 Astarra Asset Management Pty Limited 604\u003c\/p\u003e \u003cp\u003e27.4 Atticus Capital 607\u003c\/p\u003e \u003cp\u003e27.5 Austin Capital Management, Ltd 609\u003c\/p\u003e \u003cp\u003e27.6 Acorn Capital Management LLC 611\u003c\/p\u003e \u003cp\u003e27.7 Boston Provident LP 613\u003c\/p\u003e \u003cp\u003e27.8 Chais 1991 Family Trust 614\u003c\/p\u003e \u003cp\u003e27.9 Cerebrus Capital Management LP 615\u003c\/p\u003e \u003cp\u003e27.10 Cohmad Securities Corporation 616\u003c\/p\u003e \u003cp\u003e27.11 CRW Management LP 618\u003c\/p\u003e \u003cp\u003e27.12 Dynamic Decisions Capital Management Ltd 619\u003c\/p\u003e \u003cp\u003e27.13 Evergreen Investment Management Company LLC 622\u003c\/p\u003e \u003cp\u003e27.14 Finvest Asset Management LLC 624\u003c\/p\u003e \u003cp\u003e27.15 Galleon Management LP 625\u003c\/p\u003e \u003cp\u003e27.16 HFV Asset Management LP 627\u003c\/p\u003e \u003cp\u003e27.17 Jadis Investments LLC 628\u003c\/p\u003e \u003cp\u003e27.18 JWM Partners LLC 630\u003c\/p\u003e \u003cp\u003e27.19 K1 Fonds GBR 631\u003c\/p\u003e \u003cp\u003e27.20 Lancelot Investment Management LLC 633\u003c\/p\u003e \u003cp\u003e27.21 Locke Capital Management Inc 635\u003c\/p\u003e \u003cp\u003e27.22 Lodge Capital Group LLC 637\u003c\/p\u003e \u003cp\u003e27.23 M.A.G. Capital LLC 638\u003c\/p\u003e \u003cp\u003e27.24 New Castle Funds, LLC 640\u003c\/p\u003e \u003cp\u003e27.25 New Star Asset Management Group PLC 641\u003c\/p\u003e \u003cp\u003e27.26 Northern Rivers Capital Management Inc 643\u003c\/p\u003e \u003cp\u003e27.27 Nylon Capital LLP 644\u003c\/p\u003e \u003cp\u003e27.28 North Hills Management LLC 646\u003c\/p\u003e \u003cp\u003e27.29 Onyx Capital LLC 647\u003c\/p\u003e \u003cp\u003e27.30 Crossroad Capital Management LLC 648\u003c\/p\u003e \u003cp\u003e \u003c\/p\u003e \u003cp\u003e27.31 Pequot Capital Management Inc 649\u003c\/p\u003e \u003cp\u003e27.32 Ponta Negra Group LLC 651\u003c\/p\u003e \u003cp\u003e27.33 Raptor Capital Management LP 652\u003c\/p\u003e \u003cp\u003e27.34 RCS Hedge Fund 654\u003c\/p\u003e \u003cp\u003e27.35 Ruderman Capital Management LLC 655\u003c\/p\u003e \u003cp\u003e27.36 Sand Dollar Investing Partners LLC 656\u003c\/p\u003e \u003cp\u003e27.37 SNC Asset Management Inc 658\u003c\/p\u003e \u003cp\u003e27.38 Solaris Management LLC 660\u003c\/p\u003e \u003cp\u003e27.39 3V Capital Management LLC 662\u003c\/p\u003e \u003cp\u003e27.40 Weavering Capital (UK) Ltd 664\u003c\/p\u003e \u003cp\u003e27.41 West End Capital Management LLC \u0026amp; West End Financial Advisors LLC 669\u003c\/p\u003e \u003cp\u003e27.42 Westgate Capital Management LLC 671\u003c\/p\u003e \u003cp\u003e27.43 Westridge Capital Management Inc 672\u003c\/p\u003e \u003cp\u003e27.44 S2 Capital Management LLC 675\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 28 Case Studies 2010 677\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e28.1 Camulos Capital LP 677\u003c\/p\u003e \u003cp\u003e28.2 Diamondback Capital Management LLC 679\u003c\/p\u003e \u003cp\u003e28.3 Easy Equity Asset Management Inc 681\u003c\/p\u003e \u003cp\u003e28.4 Ebullio Capital Management LLP 682\u003c\/p\u003e \u003cp\u003e28.5 Frontpoint Partners LLC 684\u003c\/p\u003e \u003cp\u003e28.6 Gartmore Group PLC 686\u003c\/p\u003e \u003cp\u003e28.7 Gem Capital LLC 687\u003c\/p\u003e \u003cp\u003e28.8 Global Holdings LLC 688\u003c\/p\u003e \u003cp\u003e28.9 Grifphon Asset Management LLC and Sasquatch Capital LLC 689\u003c\/p\u003e \u003cp\u003e28.10 GSC Group Inc and J.P. Morgan Securities LLC 691\u003c\/p\u003e \u003cp\u003e28.11 Chimay Capital Management Inc 694\u003c\/p\u003e \u003cp\u003e28.12 Horseman Capital Management, L.P. 695\u003c\/p\u003e \u003cp\u003e28.13 Imperium Investment Advisors LLC 696\u003c\/p\u003e \u003cp\u003e28.14 Lanexa Management LLC 698\u003c\/p\u003e \u003cp\u003e28.15 Life’s Good Inc 699\u003c\/p\u003e \u003cp\u003e28.16 Onyx Capital Advisors LLC 700\u003c\/p\u003e \u003cp\u003e28.17 PEF Advisors LLC 702\u003c\/p\u003e \u003cp\u003e28.18 Garcia Capital Management LLC 704\u003c\/p\u003e \u003cp\u003e28.19 Goldman Sachs \u0026amp; Co 704\u003c\/p\u003e \u003cp\u003e28.20 Plainfield Asset Management LLC 707\u003c\/p\u003e \u003cp\u003e28.21 Southridge Capital Management LLC 709\u003c\/p\u003e \u003cp\u003e28.22 Thinkstrategy Capital Management LLC\/Lilaboc LLC 712\u003c\/p\u003e \u003cp\u003e28.23 Cowen Group Inc 714\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 29 Case Studies 2011 717\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e29.1 AXA Rosenberg Investment Management LLC 717\u003c\/p\u003e \u003cp\u003e29.2 Barai Capital Management LP 719\u003c\/p\u003e \u003cp\u003e29.3 Baystar Capital Management LLC 720\u003c\/p\u003e \u003cp\u003e29.4 Benchmark Asset Managers LLC, and Harvest Managers LLC 722\u003c\/p\u003e \u003cp\u003e29.5 360 Global Capital LLC 724\u003c\/p\u003e \u003cp\u003e29.6 Aethra Asset Management B.V. 724\u003c\/p\u003e \u003cp\u003e29.7 3 Degrees Asset Management Pte Ltd 725\u003c\/p\u003e \u003cp\u003e29.8 Fletcher Asset Management Inc 727\u003c\/p\u003e \u003cp\u003e29.9 Duma Capital Management LLC and Duma Capital Partners LLC 731\u003c\/p\u003e \u003cp\u003e29.10 Harbinger Capital Partners LLC 731\u003c\/p\u003e \u003cp\u003e29.11 Alnbri Management, LLC \u0026amp; Managed Accounts Asset Management LLC 734\u003c\/p\u003e \u003cp\u003e29.12 IU Group Inc 736\u003c\/p\u003e \u003cp\u003e29.13 James Caird Asset Management LLP 737\u003c\/p\u003e \u003cp\u003e29.14 Juno Mother Earth Asset Management LLC 739\u003c\/p\u003e \u003cp\u003e29.15 Komodo Capital Management Pte Ltd 741\u003c\/p\u003e \u003cp\u003e29.16 Leaddog Capital Markets LLC 742\u003c\/p\u003e \u003cp\u003e29.17 Liquid Capital Management, LLC 744\u003c\/p\u003e \u003cp\u003e29.18 Locust Offshore Management, LLC 745\u003c\/p\u003e \u003cp\u003e29.19 Longacre Fund Management LLC 747\u003c\/p\u003e \u003cp\u003e29.20 Michael Kenwood Asset Management LLC 747\u003c\/p\u003e \u003cp\u003e29.21 Millennium Global Investments Ltd 749\u003c\/p\u003e \u003cp\u003e29.22 Neural Markets LLC 751\u003c\/p\u003e \u003cp\u003e29.23 New Century Investment Management LLC 753\u003c\/p\u003e \u003cp\u003e29.24 O.S.S. Capital Management LP 754\u003c\/p\u003e \u003cp\u003e29.25 Paulson \u0026amp; Co Inc 755\u003c\/p\u003e \u003cp\u003e29.26 Pegasus Investment Management LLC 757\u003c\/p\u003e \u003cp\u003e29.27 RAB Capital Ltd 758\u003c\/p\u003e \u003cp\u003e29.28 Seatown Holdings Pte 760\u003c\/p\u003e \u003cp\u003e29.29 SHK Asset Management LLC 761\u003c\/p\u003e \u003cp\u003e29.30 SJK Investment Management LLC 762\u003c\/p\u003e \u003cp\u003e29.31 Spencer House Capital Management LLP 764\u003c\/p\u003e \u003cp\u003e29.32 Task Capital Management LLC, ARM Capital Management LLC \u0026amp; Vigilant Capital Management LLC 765\u003c\/p\u003e \u003cp\u003e29.33 Tontine Capital Management LLC 766\u003c\/p\u003e \u003cp\u003e29.34 Trafalgar Asset Managers Limited 767\u003c\/p\u003e \u003cp\u003e29.35 Vanquish Capital Group LLC 769\u003c\/p\u003e \u003cp\u003e29.36 WCM Capital Inc 770\u003c\/p\u003e \u003cp\u003e29.36.1 Reference Article 770\u003c\/p\u003e \u003cp\u003e29.36.2 Background 770\u003c\/p\u003e \u003cp\u003e29.36.3 Observations 771\u003c\/p\u003e \u003cp\u003e29.37 Wessex Asset Management Limited 771\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 30 Case Studies 2012 773\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e30.1 Abante Capital (Proprietary) Limited and Basileus Capital (Pty) Ltd 773\u003c\/p\u003e \u003cp\u003e30.2 Tell Investments LLP 775\u003c\/p\u003e \u003cp\u003e30.3 TIG Advisors LLC 776\u003c\/p\u003e \u003cp\u003e30.4 Tradewinds Global Investors LLC 777\u003c\/p\u003e \u003cp\u003e30.5 Voras Capital Management LLC 778\u003c\/p\u003e \u003cp\u003e30.6 Bluegold Capital Management LLP 779\u003c\/p\u003e \u003cp\u003e30.7 Thaddeus Capital Management (HK) Limited 780\u003c\/p\u003e \u003cp\u003e30.8 Brickell Fund LLC 781\u003c\/p\u003e \u003cp\u003e30.9 Aletheia Research and Management Inc 782\u003c\/p\u003e \u003cp\u003eAppendix A Index of Case Studies by Investment Manager 785\u003c\/p\u003e \u003cp\u003eAppendix B UK Serious Fraud Office Hedge Fund Investor Questionnaire 793\u003c\/p\u003e \u003cp\u003eIndex 795\u003c\/p\u003e \u003cp\u003eList of Funds 800\u003c\/p\u003e \u003cp\u003eList of Fund Managers 805\u003c\/p\u003e \u003cp\u003e\u003cb\u003eRAJIV JAITLY\u003c\/b\u003e is the managing partner at Jaitly LLP, a risk consultancy that provides independent risk, fund governance and operational due diligence services to global alternative investment clients. He set up and managed due diligence and investment management operations for the alternative investment asset businesses of major companies such as UBS, Santander and AXA. Jaitly has also advised the Regulatory Policy team of the U.K. Pensions Regulator, was appointed an expert by the UK Office of Fair Trading for its market study into the UK defined contributions pensions market and was commissioned by the UK Financial Services Consumer Panel to write a report on Fund Costs and their implications. He has also held appointments as a non-executive director of funds. \u003c\/p\u003e  \u003cp\u003eHedge funds promise much, but also present considerable investment and operational risks – especially if the due diligence performed is inadequate. Although many claim to do detailed due diligence it can potentially be flawed, look at the wrong information and evidence, be deficient in some respects or, in some cases, be entirely absent. Operational risk on hedge funds is considered by many to be a major factor in assessing their viability and success and that is why operational due diligence is an important process in the selection and monitoring of hedge fund investments by investors. Whether the issues to consider are operational problems, inadequate infrastructure, documentation, poor service providers, inexperienced staff, remuneration issues, or simply denial, an investment decision with inadequate operational due diligence can potentially go very quickly from being unremarkable to catastrophic. \u003c\/p\u003e \u003cp\u003e\u003ci\u003ePractical Operational Due Diligence on Hedge Funds\u003c\/i\u003e by Rajiv Jaitly is a comprehensive guide on how to perform operational due diligence on fund structures and their investment managers, helping to make better investment choices and decisions and avoid potential disaster. Throughout, the author explains what to focus on and why, what red flags to watch, and what lessons might be drawn from the experiences of investors in hedge funds and points to negotiate on.  \u003c\/p\u003e\u003cp\u003e This book includes a library of 300+ detailed case studies of issues on hedge funds going back to situations with the earliest hedge funds in the 1970’s right up to 2012. Nothing is more enlightening and valuable than these actual case studies making up more than half of the book. Each case study walks the reader through the financial and other predicaments faced by investors and investment managers, the decisions that were made and the outcomes that resulted. Each case is then analysed in depth, demarcating key issues and highlighting key lessons to be taken away in order to avoid repeating the mistakes of others.  \u003c\/p\u003e\u003cp\u003e Although the book is written with the due diligence professional in mind, it will be of interest to anyone making investment decisions that involve hedge funds or any other type of fund. It will also be of interest to investment managers and service providers in providing an insight into how they can improve their investment offerings to investors.  \u003c\/p\u003e\u003cp\u003e It offers a wealth of tools and techniques that aid the practitioner in performing due diligence with the level of care that is required given the amounts often at stake. Critical issues covered include:  \u003c\/p\u003e\u003cul\u003e\n\u003cli\u003eEstablishing the existence of adequate controls in the operations of an investment manager\u003c\/li\u003e \u003cli\u003eUnderstanding the operation of leverage and related risks\u003c\/li\u003e \u003cli\u003eScoring risks on a hedge fund\u003c\/li\u003e \u003cli\u003eManaging risks of conducting due diligence\u003c\/li\u003e \u003cli\u003eNegotiating terms of investment\u003c\/li\u003e \u003cli\u003eChecklists\u003c\/li\u003e \u003cli\u003eGuidelines for non-executive boards to review risk\u003c\/li\u003e \u003cli\u003eRational for different fund structures\u003c\/li\u003e \u003cli\u003eRegulatory enforcement actions\u003c\/li\u003e\n\u003c\/ul\u003e \u003cp\u003e If you are performing due diligence or making investment decisions involving hedge funds this is a book that you cannot afford to be without.\u003c\/p\u003e","brand":"Wiley","offers":[{"title":"Default Title","offer_id":47989834252517,"sku":"NP9781119018759","price":195.0,"currency_code":"USD","in_stock":false}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/1842\/7735\/files\/9781119018759.jpg?v=1761785620","url":"https:\/\/k12savings.com\/es\/products\/practical-operational-due-diligence-on-hedge-funds-isbn-9781119018759","provider":"K12savings","version":"1.0","type":"link"}