Hedge fund due diligence process considers myriad aspects of qualitative and quantitative factors

How to analyse the myriad of data collected during the due diligence process has led many companies to try to establish methods of quantifying and measuring some or all of the resulting information.

The process of analysing hedge fund managers involves many steps. While most companies that conduct hedge fund due diligence have their own unique procedures and policies, each generally integrates eight broad categories (including a brief sampling of the specific review items in each).

The first is sourcing and screening where managers can be sourced from a variety of places including databases, service providers, other hedge fund managers as well as funds screened based on strategy, risk