Decline of FoHFs saps due diligence efforts

Private investigators are helping investors find out more about hedge fund managers’ pasts

magnifying-keyhole

The ability of due diligence firms to root through the public records of hedge fund employees has never been easier, with a number of specialist private investigation firms offering their services to hedge fund investors to help them understand the true risks of their investments.

Investigators say they have uncovered drug-taking, strip-club photos, bogus degrees, hidden jobs, covered-up bankruptcies and casino binges. What happens in Vegas, it seems, may not stay in Vegas.

The inquiries do not

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