Our team has decades of experience in alternative and traditional investments and has produced over 1,000 due diligence reports, consistently flagging potential problems.
Our company is based in the New York City area, but the on-site interview is conducted in person wherever the manager is located.
We perform due diligence as if it were our own money being invested. This is not a simple data-collection effort. We ask the hard questions, probe for details, look for inconsistencies and abnormalities, and cross-check and verify results. Even though our process has stood the test of time, we continually update our approach to adapt to industry changes.
- Gather documentation from the Investment Manager:
- Among the first steps of the report are:
- Extensive background check on firm and up to three key staff:
- We require the manager to sign and return our Legal & Regulatory Questionnaire or produce a copy of form ADV from the SEC, both of which query the manager about convictions, felonies, name changes, etc.
- Verify with the Administrator:
- Verify with the Auditor:
- On-site visit at the manager's office discussing:
- Attorney review and cross reference of documentation:
- Executive Summary: The most important and unusual findings are summarized in this section. It features warnings and areas of concern or ambiguity, highlighting discrepancies.
- Opinions: The highlights and lowlights are expounded upon and discussed in the context of what is normal or unusual for hedge funds in the current climate.
- Rating: Each fund is rated in several categories with a 5-star system.
- Recommendations: The team writes its recommendations and the reasons for them on the efficacy of a potential investment from an institutional investor's point of view.
Note: Not every item in the list is applicable or possible in all cases.