Fixing operational due diligence red flags helps hedge funds attract investors
Phillip Chapple at KB Associates helps hedge funds become operationally fit for investors. Differences between European, the US and Asian investors could mean a variety of fund structures in future
One thing you do is help hedge funds spot the red flags for operational due diligence. What are some of the most common red flags?
I find the funds that have been around the longest usually have the biggest red flags mainly because the industry has accelerated since Madoff and Lehman and there’s been a real change in the balance from infrastructure protecting the manager to infrastructure protecting the investor. Some of the very basic things we see, for example, are gating provisions or
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