News
August 26, 2010
New Corgentum Research Paper :
Corgentum – The Advantages of Having a Local Hedge Fund Operational Due Diligence Presence
A new paper has been released by Corgentum Consulting
entitled
Corgentum – The Advantages of Having a Local Hedge Fund Operational Due Diligence Presence .
This paper provides an overview of the benefits of Corgentum's local presence in the heart of the New York area’s hedge fund community. Corgentum’s local knowledge and expertise provides our firm with significant insights for managers based in New York, Connecticut, New Jersey and the surrounding areas. This local presence compliments our firm’s broader global hedge fund coverage.
The paper can be found in the Research section of the
www.corgentum.com
website, or via direct link
here .
June 29 , 2010
New Corgentum Study –
Hedge Fund Opearational Due Diligence: The Madoff Effect – An Analysis of Operational Due Diligence Trends
Corgentum Consulting
has released a new first of its kind study which quantifies investor trends in hedge fund operational due diligence as a results of frauds
such as Madoff as well as pending financial regulation. The study is entitled,
Hedge Fund Opearational Due Diligence: The Madoff Effect – An Analysis of Operational Due Diligence Trends.
Key findings from the study include:
- Post-Madoff investor due diligence reviews of hedge fund cash management policies and controls has increased by almost 60%
- The role of the board of directors of offshore funds is dangerously minimized with less than 2% of investors covering these items during due diligence
- Reviews of information technology infrastructure, personnel turnover and the quality of overall operations management also tend to be overly minimized by investors during operational
- In anticipation of stricter hedge fund regulation fund of hedge funds are focusing the bulk of their due diligence efforts on legal, compliance and regulatory risks
- A Madoff Effect has developed in hedge fund due diligence causing an increased investor focus on:
- cash controls
- quality and length of relationship with service providers
- transparency and reporting
For this study Corgentum collected data from over 200 global hedge fund allocation organizations including fund of hedge funds, endowments, foundations, corporate pensions, family offices, large independent financial advisory practices and private banking organizations.
The study paper can be found in the Research section of the www.corgentum.com website, or via direct link here .An article regarding the Corgentum study was published in Opalesque. The article entitled, Madoff Effect continues to see investors focus more on fraud risk than operational risk , is available at www.Opalesque.com or via direct link here ( subscription required). Additionally, the press release regarding this study is available here . This Corgentum study was also covered on HedgeCo.Net in this article, as well as by Hedgeweek in an article entitled, Madoff Ponzi effect influences investor due diligence.
June 10 , 2010
New Corgentum Research Paper :
Hedge Fund Audited Financial Statement Reviews During Operational Due Diligence
A new research paper by Corgentum Consulting
has been released entitled Hedge Fund Audited Financial Statement Reviews During Operational Due Diligence .
This paper provides a discussion of the importance of audited financial statement reviews as part of the broader hedge fund operational due diligence process. Additionally, this paper provides a list of key questions investors may want to consider when reviewing audited financial statements.
The paper can be found in the Research section of the
www.corgentum.com
website, or via direct link
here .
June 8 , 2010
Corgentum Releases New Paper :
Hedge Fund Operational Due Diligence Questionnaire – To Use or Not To Use?
Corgentum Consulting has released a new
research paper which provides an overview of the role due diligence questionnaires ("DDQ's") and request for proposals ("RFP's")
play in the hedge fund operational due diligence process. This paper also outlines some key questions and other considerations investors
should bear in mind before asking a manager to complete a customized due diligence questionnaire.
The paper entitled,
Hedge Fund Operatinal Due Diligence Questionnaire – To Use or Not To Use?
can be found in the Research section of the
www.corgentum.com
website, or via direct link
here .
June 4 , 2010
New Research Piece - Hedge Fund Operational Due Diligence: An Absolute or Floating Standard?
Corgentum Consulting has released a new research piece which discusses the pros and cons of applying absolute best practice and floating standards towards hedge fund operational due diligence. This paper outlines, the benefits to investors of developing and maintaining competency of global operational risk trends. While an absolute best practice standard facilitates uniformity in comparing operational risk information, this methodology can suffer from rigidity. A floating standard can better accommodate the particularities of hedge funds operating in different regions but runs the risk of being overly flexible. Hedge Fund Operatinal Due Diligence: An Absolute or Floating Standard? can be found in the Research section of the www.corgentum.com website, or via direct link here .May 28 , 2010
Corgentum releases new paper : Education Series - Information Technology Due Diligence
Corgentum Consulting has released a new paper entitled, Education Series - Information Technology Due Diligence This paper discusses the often overlooked nature and importance of incorporating a review of a hedge fund's information technology infrastructure into the investor operational due diligence process. Specifically, the information technology topics discussed in this piece include a review of a hedge fund's hardware, software, business continuity and disaster recovery and information security. This paper can be found in the Research section of the www.corgentum.com website, or via direct link here .April 16, 2010
Corgentum's Scharfman discusses the SEC's Case Against Goldman Sachs with Fox Business News
Corgentum Consulting Managing Partner Jason Scharfman, appeared on Fox Business News to discusses the SEC's complaint against Goldman Sachs. In the segment, which was titled, "SEC Case Against Goldman a Smoking Gun?" and hosted by Liz Claman, Mr. Scharfman discuss several aspects of the merits of the SEC's civil complaint against Goldman Sachs including the role played by the broadening scope of due diligence in regulatory inquiries, the importance of scienter in securities litigation and the nature of investor disclosure statements made by hedge funds. The clip is available here:The segment can also be viewed on the Fox Business News Website.
April 7, 2010
Corgentum's Scharfman to teach hedge fund operational risk and due diligence class at New York University
Corgentum Consulting Managing Partner Jason Scharfman, will be teaching a course at New York University on the subjects of hedge fund operational risk and due diligence. This course, which is applicable towards NYU's Certificate in Financial Risk Management, will run for eight sessions beginning on Wednesday May 26, 2010. The course description is outlined below:Establish a solid understanding of the essential techniques required to perform legal, regulatory, back office investment, and operational due diligence on hedge funds and other alternative investments. Topics include an overview of fund legal and financial documentation, valuation and custody assessment, asset verification techniques, common red flags, fraud case studies, and fund interview strategies. The course is designed for attorneys, auditors, investment analysts, legal and compliance professionals, and investor relations and marketing professionals interested in developing a comprehensive understanding of alternative investment due diligence techniques and issues.
For more information or to enroll in this course please visit the course details homepage.
April 5, 2010
Corgentum releases new paper : Education Series - Evaluating Your Hedge Fund’s Administrator
Corgentum Consulting has released a new paper entitled, Education Series - Evaluating Your Hedge Fund’s Administrator This paper discusses several key questions investors can utilize to evaluate their hedge fund's administrator. Other topics addressed in this paper include the importance of understanding the nature of the administration services being provided, the need to monitor the on-going relationship between the hedge fund and the administrator and the diagnostic process concerning the role played by the administrator in the overall valuation process. This paper can be found in the Research section of the www.corgentum.com website, or via direct link here .April 2, 2010
Corgentum to present at 2010 Public Funds Summit East - "Legal issues facing public pension plans"
Corgentum Consulting Managing Partner Jason Scharfman, will be speaking at the Opal Financial Group's 2010 Public Funds Summit East on a panel entitled, "Legal issues facing public pension plans." Topics Mr. Scharfman plans to address in this panel discussion include the implications of recently proposed regulatory frameworks for the pension fund hedge fund due diligence process, steps pensions should take to vet conflicts of interests between consultants and asset managers and the importance of documenting the hedge fund operational due diligence process. The conference will take place in Newport, Rhode Island on July 21, 2010. The full conference agenda can be viewed on Opal's website.March 10, 2010
Corgentum releases new paper: Information Overload Red Flags - When a hedge fund doesn’t know when to say when to due diligence information requests
Corgentum Consulting has released a new paper entitled, Information Overload Red Flags - When a hedge fund doesn’t know when to say when to due diligence information requests. This paper discusses the importance of understanding and diagnosing the hedge fund due diligence document distribution process as part of the overall operational risk evaluation of a hedge fund manager. Questions posed by this paper for investors to consider include: Are response requests pro-active or reactive? and How is investor information protected? Also highlighted in this paper are the potential for increased operational risks in hedge funds which do not effectively manage due diligence related document distribution. This paper can be found in the Research section of the www.corgentum.com website, or via direct link here .January 29, 2010
Corgentum's Scharfman to moderate consultants panel: The Changing Landscape of Alternative Investments and what opportunities lie ahead?
Corgentum Consulting Managing Partner Jason Scharfman, will moderate a panel at the upcoming Opal Investments Consultants Forum entitled, "The Changing Landscape of Alternative Investments and what opportunities lie ahead?" Mr. Scharfman will address topics including the increasing resources being dedicated towards due diligence, the evolving nature of operational due diligence and the effect of the global recession on due diligence. The conference will take place on March 11, 2010 at the Princeton Club of New York . For more information regarding the conference or to register please visit Opal's website.November 24, 2009
Corgentum releases, Hedge Fund Service Provider Due Diligence: A Window Into Operational Risk
Corgentum Consulting has released a new paper entitled, This paper discusses the importance of conducting a review of a hedge fund's service providers (i.e. - admnistrator, auditor, legal counsel etc.) as part of the operational due diligence process. When evaluating such service providers this paper also highlights the benefits of reviewing such relationships from both the service provider’s and hedge fund’s perspective to yield a a more complete operational picture of a hedge fund. This paper can be found in the Research section of the www.corgentum.com website, or via direct link here .
September 23, 2009
Scharfman Discusses the Galleon Group insider trading case with Wall Street Journal:
Devil Is In Details For Hedge-Fund Advisers
Jason Scharfman, Corgentum Consulting Managing Partner, discusses the insider trading allegations, fraud and conspiracy charges brought by the Securities and Exchange Commission against the Galleon's Group Raj Rajaratnam with the Wall St. Journal's Compliance Watch. The article is titled, "Devil Is In Details for Hedge-Fund Advisers " and focuses on the compliance risks hedge funds face surrounding their interaction with executives at companies in which perform research on, or make direct investments. Mr. Scharfman says in part, " Executives at firms will pay lip service to those who hold big positions." The full article can be read on the Wall St. Journal website.
September 23, 2009
Corgentum featured in Wall Street Journal's Compliance Watch: Hedge Fund Investors Want Business Details
Corgentum Consulting Managing Partner, Jason Scharfman, was featured in the Wall St. Journal's Compliance Watch. In the article entitled, "Hedge Fund Investors Want Business Details" Mr. Scharfman highlights how in the post-Madoff environment hedge fund investors are demanding, "increased granularity" in due diligence. He further goes on to provide an example of legal documentation risk in hedge funds. The full article can be read on the Wall St. Journal website.
September 8, 2009
Corgentum Releases, Jack of all trades or master of none? - The benefits of multi-disciplinary operational due diligence
Corgentum has released a new paper entitled, "Jack of all trades or master of none? - The benefits of multi-disciplinary operational due diligence" . This piece discusses the risks associated with focusing too heavily on one area of operational due diligence and the benefits associated with the expansion of often self-limiting myopic due diligence approaches. By utilizing a broader multi-disciplinary approach, this paper outlines the ways in which hedge fund investors may seek to analyze a more complete spectrum of operational risks via a multi-disciplinary approach. This paper can be found in the Research section of the www.corgentum.com website, or via direct link here .
September 3, 2009
Corgentum's Scharfman to speak at CFA Virginia Society about post-Madoff alternative investments operational due diligence
Corgentum Consulting Managing Partner, Jason Scharfman, will be giving a talk at the CFA Viriginia Society in Richmond Viriginia. Mr. Scharfman's presentation is entitled, "Post-Madoff Alternative Investments Operational Due Diligence" and will focus on the new challenges confronting both hedge funds and investors in the post-Madoff environment. The presentation will take place at 12pm on October 1, 2009. For more information and to RSVP please visit the CFA Virginia website .
August 6, 2009
Corgentum Releases new paper, Has Rigor Mortis Set In On Your Due Diligence? - The dangers of inflexible operational risk methodologies
Corgentum has released a new piece entitled, Has Rigor Mortis Set In On Your Due Diligence? - The dangers of inflexible operational risk methodologies . This paper outlines the benefits of adding an element of flexibility to operational due diligence approaches and cautions against overly rigid operational risk methodologies. The piece can be found in the Research section of the www.corgentum.com website, or via direct link here .
July 21, 2009
Canadian Hedgewatch publishes Corgentum's Fund of Hedge Fund Operational Risk Study
Canadian Hedgewatch published the Corgentum Consulting study entitled, Analyzing Operational Due Diligence Frameworks In Fund Of Hedge Funds . The study appears in the July 2009 (volume 9, Issue 7) monthly report. The study can be found in the Research section of the www.corgentum.com website here. Reference to the study can also be found on the Canadian Hedgewatch website .
July 21, 2009
Corgentum releases new paper Ten Questions Every Investor Should Ask Their Hedge Fund Manager: Operational Risk
Corgentum recently released a new piece entitled, Ten Questions Every Investor Should Ask Their Hedge Fund Manager: Operational Risk . In the post-Madoff environment many hedge fund investors, both institutional and ultra-high net worth, are taking an increased responsibility for overseeing their own due diligence. This piece outlines ten questions investors should ask during the operational due diligence process. The paper can be found in the Research section of the www.corgentum.com website, or via direct link here .
July 20, 2009
Hedgeco.net discusses Corgentum's Fund of Hedge Fund Operational Due Diligence Study
In a recent post HedgeCo.net's Alex Akesson discussed Corgentum's fund of hedge funds operational risk framework study. The post entitled, "Fund of Hedge Fund Operational Due Diligence - Study" , provides an overview of the key points of Corgentum's study which is titled, "Analyzing Operational Due Diligence Frameworks In Fund Of Hedge Funds." . The study can be found in the Research section of the www.corgentum.com website here. The full HedgeCo.net post can be read here and on the Hedge Fund News Blog .
July 16, 2009
Corgentum's Scharfman to moderate fund of funds panel at Endowment & Foundation Forum
It has been announced that Corgentum Consulting Managing Partner, Jason Scharfman will moderate a fund of hedge funds panel at Endowment & Foundation Forum at the Opal Endowment & Foundation Forum at the Hyatt Regency Boston, Boston, MA on October 26, 2009. Rather than focusing on a particular investment style,this conference will tackle the issues that are most germane to the nation’s endowments and charitable foundations by examining critical investment topics, as well as the need to align fiscal strategy with the goals of a particular organization. More information about the conference can be found here .
July 15, 2009
Corgentum releases new piece, Thinking outside the box - Seven innovative due diligence techniques
Corgentum Consulting has released a new paper entitled, Thinking outside the box - Seven innovative due diligence techniques . This paper outlines new techniques investors can utilize during the course of the hedge fund due diligence to innovatively adapt to the modern due diligence environment. The paper can be found in the Research section of the www.corgentum.com website, or via direct link here .
July 2, 2009
New Corgentum research paper, Preparing for the operational due diligence visit: A hedge fund's guide
From the perspective of a hedge fund manager, preparing for an operational due diligence visit is a critical in the post-Madoff era. To provide some guidance in this area Corgentum Consulting has released a new research piece entitled, Preparing for the operational due diligence visit: A hedge fund's guide . The paper can found in the Research section of the www.corgentum.com website, or via direct link here .
June 29, 2009
Corgentum's Scharfman featured on CNBC's closing bell discussing, "The Madoff Effect"
Corgentum Consulting Managing Partner, Jason Scharfman
was featured on CNBC's closing bell with Melissa Francis to discuss the effect of the Madoff scandal on the future of due diligence and
transparency in hedge funds. In the segment, which was titled, "The Madoff Effect" ,
Mr. Scharfman discusses the many yellow flag and red flags surrounding Madoff's operations,
a trend of increasing time and resources being budgeted for due diligence and
the importance of vetting a fund of hedge funds due diligence processes, among other topics.
The clip is available here:
The segment can also be viewed on CNBC's website .
June 29, 2009
Scharfman author's guest piece for Pension and Investments, "Investing in hedge funds just got harder"
Corgentum Managing Partner, Jason Scharfman recently authored a guest article for Pensions and Investments where he discusses the many challenges facing pensions seeking to perform operational due diligence on hedge funds. The article, which is featured in the publication's Regulation & Legislation section, is entitled, "Investing in hedge funds just got harder" . In the piece, Mr. Scharfman writes, "In the post-Madoff environment, sponsors of pension and other funds face a number of complex challenges with respect to performing due diligence on hedge funds..with all of these potential pitfalls, what are pension funds to do? There are a number of basic steps that can be taken to ensure a pension fund is adequately insulated from bearing unnecessary operational risks when investing in hedge funds through separately managed accounts structures." Mr. Scharfman goes onto highlight the benefits and pitfalls of separately managed accounts including, the fact that such structures do not completely remove operational risk. The full article can be read on the Pension & Investments website .
June 26, 2009
Scharfman discusses the future of Madoff behind bars with Fox Business News
Jason Scharfman
Corgentum Managing Partner, appeared on Fox Business News to discusses the
Bernard Madoff sentencing as well as the due diligence failings which led to the Madoff crisis.
In the segment, which was titled,
"The Future of Madoff Behind Bars" ,
hosted by Liz Claman and David Asman, Mr. Scharfman discuss several aspects of the
Madoff sentencing including the victim's statements and Bernard Madoff's own statements to Judge Denny Chin.
The clip is available here:
The segment can also be viewed on the Fox Business News Website .
June 22, 2009
Corgentum featured in Campden FB: For families in business in " The mysterious case of the missing due diligence "
Jason Scharfman Corgentum Managing Partner, authored an article for the family office publication, Campden FB: For families in business on the subject of due diligence in the post-Madoff world. The artilce entitled, The mysterious case of the missing due diligence was recently featured in the publications June 2009 edition. Mr. Scharfman writes, "When it comes to the subject of due diligence, family offices allocating to alternatives in general, and hedge funds specifically, face a number of challenges in the post-Madoff environment." The full article can be read on the Campden FB website (subscription required).
June 18, 2009
Corgentum featured in Alternative Universe discussing hedge fund regulation
Corgentum Managing Partner, Jason Scharfman , was featured in Alternative Universe discussing hedge fund regulation. In the article which is titled, "Financial Reg Proposals Have Something For Everyone" , Scharfman says, “The high-net-worth individual or the pension fund may think this is going to be a lot more comprehensive,” ...they think the SEC is going to take care of this and it’s something coming direct from the President. It by no means replaces investors doing their homework.” Mr. Scharfman, also discusses the potential role of the proposed Obama administration's financial plan to create an oversight counsel. The full article can be read in the June 22, 2009 edition (volume 7, Issue 1) of Alternative Universe , (subscription required).
June 18, 2009
Corgentum featured on Forbes.com discussing the effects of Obama administration plan on rating agencies
Corgentum Managing Partner, Jason Scharfman, was featured on Forbes.com discussing the potential effects of the Obama administration proposed financial regulatory plan on rating agencies. In the article entitled, "Obama Calls For More Change: The determined president shifts his attention and energy to the troubled credit rating industry," . Mr. Scharfman states, "Rating agencies are going to be looked at more closely, and will be placed under much more accountability and liability." Highlighting the increased importance of due diligence, Mr. Scharfman additionally was quoted as stating, "Rating agencies will be viewed more as a guide, rather than the be-all-end-all, and you'll see more due-diligence, whether for banks or their clients." Mr. Scharfman also discussed the importance of sufficient capital adequacy requirements in the wake of the events of Barings Bank and Long-Term Capital Management. The full article can be read on Forbes.com.
June 17, 2009
Scharfman discusses the failings of old regulation and the Obama administration's new plan with Fox Business News
Jason Scharfman, Corgentum's Managing Partner
appeared on Fox Business News to discuss the failings of old regulations and the new Obama plan.
In a segment titled,
Why Hasn't Old Regulation Worked?
hosted by Liz Claman and David Asman, Mr. Scharfman discuss several aspects of the proposed regulatory plan including the historical effects of regulations such as
Sarbanes Oxley, the details of President Obama's plans for financial regulatory reform including the proposed
advisory council and the new role and power of the Fed. The clip is available here:
This segment can also be viewed on the Fox Business News website.
June 17, 2009
Corgentum featured in Marketsmedia Online piece on regulatory reforms focus on financial risk
In an article in Marketsmedia Online entitled, "Reg Reforms Emphasize Financial Risk" , Corgentum Managing Partner, Jason Scharfman, comments on President Obama's newly proposed financial regulatory reforms. Specifically, Mr. Scharfman highlights how the proposed reform packages, "focuses on financial risks but misses important issues related to operational risk, valuation, back office accounting, and reputational risk that led to Madoff and similar scandals." The full article can be found on the Marketsmedia Online website (subscription required).
June 16, 2009
Corgentum featured on Canada's Business News Network discussing the Obama administration's plan to regulate hedge funds
Corgentum Managing partner, Jason Scharfman, appeared on Canada's Business News Network ("BNN") with Andrew Bell and Kim Parlee, to discuss the effects on the hedge fund industry, both direct and indirect, of President Obama's plan to restrcuture the U.S. financial regulatory system. In the segement, which was titled, The Close: Regulating Hedge Funds, Mr. Scharfman discusses a number of topics including the prospect for reduced influence of rating agencies, changes in the regulatory framework to create a super-regulatory agency, registration requirements for hedge funds, the differences between financial risk and operational risk, lessons learned from historical hedge fund frauds such as Bayou and the challenges of due diligence in the post-Madoff environment. The segment can be viewed on BNN's website .
June 16, 2009
Corgentum's Scharfman discusses the impact of European hedge fund regulation in the US with the Wall Street Journal
Jason Scharfman, Corgentum Managing Partner, discusses the potential consequences of European hedge fund regulation in the US with the Wall Street Journal. In the article entitled, "Europe's Hedge Fund Regulation Efforts Have US Implications" Mr. Scharfman outlines that new regulations are actually "going to hurt a lot of pension funds and other large hedge fund investors because it will be giving them a false sense of security." He further goes on to clarify that "hedge funds aren't trying to avoid tough regulation so they can commit fraud. Rather, they are trying to avoid the bureaucratic red tape that can cost managers lots of time and money, and ultimately dent investors' returns." The full article can be read on the Wall Street Journal website (subscription required).
June 10, 2009
Corgentum featured in Opalesque article, "Has third party administration become a necessity?"
Corgentum, a provider of comprehensive operational risk consulting services to the alternative investment industry, was feature in a recent Opalesque article entitled, "Has third party administration become a necessity?" Jason Scharfman, Managing Partner of Corgentum, comments on the often complicated relationship between hedge funds and administrators saying, "98% of all hedge funds view administrators as a waste of money and a necessary evil that they are forced to use because of their investors." The full article can be read on Opalesque.com (subscription required).
June 8, 2009
Corgentum to present at the Courant Institute of Mathematical Sciences at New York University
It has been announced that Corgentum Consulting will present a seminar on the subject of operational risk in hedge funds at the Courant Institute of Mathematical Sciences at New York University . The seminar, which will taken place on Tuesday September 22, 2009, is part of the Tuesday Seminar series for the Mathematics in Finance Master Students. For more information on the seminar series please visit here.
May 28, 2009
Corgentum's Scharfman writes guest contirubtor article for FINalternatives:
The Depth Of The Dive: Gauging The Scope And Scale Of Due Diligence
Corgentum Managing Partner, Jason Scharfman, has written an article as a guest contributor for FINalternatives. The article, The Depth Of The Dive: Gauging The Scope And Scale Of Due Diligence . The piece states in part, "in the post-Madoff environment it is no longer acceptable for a fund of hedge funds or any institution, which allocates to hedge funds, to simply claim that they have comprehensive investment and operational due diligence practices. These firms must be able to consistently demonstrate the depth and breadth of their due diligence." The full article can be read on the FINalternatives website here.
May 26, 2009
Corgentum releases new study Analyzing Operational Due Diligence Frameworks In Fund of Hedge Funds
Corgentum released a study entitled, Analyzing Operational Due Diligence Frameworks In Fund of Hedge Funds This study seeks to develop a transparent benchmark against which operational due diligence frameworks may be compared. Key study findings include:
The full study can be read here
May 14, 2009
Scharfman to moderate HedgeFund.net panel at HFN Investor & Manager Spring Summit: "Next Level Due Diligence - Complementary Methods to Solidify the Process"
It has been announced that Jason Scharfman, Managing Partner of Corgentum Consulting, will moderate a panel at the HedgeFund.Net Investor & Manager Spring Summit on June 3, 2009 at The University Club New York. The panel is titled, "Next Level Due Diligence - Complementary Methods to Solidify the Process." Conference registration information and the full agenda can be reviewed on HedgeFund.Net's website here.
May 13, 2009
Jason Scharfman Op-Ed piece "The Fund of Hedge Funds Regulatory Loophole" featured in the current issue of the Hedge Fund Law Report.
Jason Scharfman, Manging Partner of Corgentum Consulting, has written a guest article for the Hedge Fund Law Report. The piece, "The Fund of Hedge Funds Regulatory Loophole" appears in the current issue of the Hedge Fund Law Report. In the piece, Scharfman states in part that, "All of the proposed hedge fund regulations dangerously ignore the opportunity to protect investors and institutions which place their capital within this lax due diligence framework." The full piece can be viewed on the Hedge Fund Law Report's website (subscription required).
May 13, 2009
Corgentum presents at the Jamison Group's Harvard Club Hedge Fund Regulatory and Corporate Governance Best Practices Seminar
Corgentum Managing Partner Jason Scharfman, spoke on a panel held at the Harvard Club of New York sponsored by the Jamison Group. The session at which Mr. Scharfman spoke was entitled, "Hedge Fund Regulatory and Corporate Governance Best Practices in an Era of Heightened Scrutiny from Both Regulators and Investors.” Mr. Scharfman's comments focused on regulatory trends in hedge funds, key issues in operational due diligence, the evolving role of a hedge fund's board of directors and the operational risks of separate accounts.
May 11, 2009
Corgentum to present at Public Funds Summit East "Navigate the Future" in Newport, RI at a panel entitled, "A look at Pension Consultants and Their Roles"
Jason Scharfman, Corgentum's Managing Partner will be speaking at the Opal Financial Group's Public Funds Summit East panel, "A look at Pension Consultants and Their Roles" in Newport, RI on July 8, 2009 through July 10, 2009. The full conference agenda can be viewed here.
May 6, 2009
Corgentum's Scharfman featured on CNBC's closing bell discussing the proposed uptick rules for shortselling
Jason Scharfman,
Managing Partner of Corgentum Consulting, was featured on CNBC's closing bell with Bob Pisani discussing the proposed uptick rules
to combat short selling abuses in a segment called, "Curbing the Shorts." Mr. Scharfman highlights the need for the reinstatement of the uptick rule.
The discussion includes a review of the recent SEC roundtable on the subject including an overview of academic research in this area and a
discussion of the circuit breaker and bid test proposals. The clip is available here:
This segment was part of a larger segment of the uptick rule which can be viewed in full on CNBC's website here.
April 14, 2009
Corgentum profiled in HedgeFund.Net article "A New Service-Provider Pitch: Is Your Hedge Madoff-Proof?"
Corgentum Consulting and Managing Partner Jason Scharfman were profiled in a recent piece on HedgeFund.Net. The artilce, which is entitled, "A New Service-Provider Pitch: Is Your Hedge Madoff-Proff?", highlights an increased trend of hedge fund investors seeking guidance from operational due diligence experts such as Corgentum to avoid fraud and Ponzi schemes such as the Madoff crisis. The article reads in part, "While automation and outsourcing were mandated to eliminate mutual fund operational risk, the risk of outright fraud in the hedge fund industry is now fueling service provider growth. Scharfman theorized the average hedge fund [investor] might not be able to undertake due diligence on its own, turning businesses like Corgentum a necessity rather than a luxury." The full article can be read on HedgeFund.Net here.
April 7, 2009
Washington Post Features Corgentum's Scharfman Commenting on the Increased Hazards of Financial Regulation
The Washington Post published an article today, "Expanding financial oversight may add risks - White House regulation plan could increase hazards it's mean to prevent." It reads in part: "The government is going to be more hands-on,and that's going to imply to people the government is vetting the risks relevant to a hedge fund," said Jason Scharfman, managing director of Corgentum, a firm that evaluates whether hedge funds have proper safe internal procedures. "It exposes investors to a false sense of security that they don't need to perform adequate due diligence on the hedge funds they're investing with." The full article is available on WashingtonPost.com or on MSNBC.
April 6, 2009
HedgeFund.Net and FINalternatives cover Corgentum Launch Announcement
News of Corgentum's launch announcement was recently covered by HedgeFund.Net and FINAlternatives. The FINalternatives coverage can be read here. The HedgeFund.Net article can be read here.
April 2, 2009
Corgentum Issues Launch and Hedge Fund Operational Due Diligence:Understanding the Risks Press Releases
Corgentum Consulting has issued a press releases formally announcing the firm's launch. It can be read here. A second press release was issued announcing the publication of Hedge Fund Operational Due Diligence:Understanding the Risks . It can be read here .
March 30, 2009
Corgentum's Scharfman discusses separate accounts with the Wall St. Journal's Compliance Watch
Corgentum Managing Partner, Jason Scharfman, was featured in a Wall St. Journal Compliance Watch article entitled, "Separate Accounts Gain Traction." The article discusses the recent popularity of separately managed accounts among hedge fund investors. Mr. Scharfman cautions against the mixed blessings offered by the increased transparency certain separate accounts often provide by stating, "Parties involved with separate accounts, including the investor, are also typically bound by confidentiality agreements that prevent them from revealing hedge fund managers' positions. Still, even if some information is shared, a fund's strategy would remain difficult to replicate... They can reveal in real time what they're doing, but [investors] don't have the proprietary trading algorithms and structure to do anything about it." The full article can be read on the Wall St. Journal's website (subscription required).
March 30, 2009
Conde Nast Portfolio Mentions Corgentum piece Hedge Fund Regulation Doesn't Matter: An Artificial Operational Floor
Conde Nast Portfolio's Felix Salmon referenced the Corgentum piece Hedge Fund Regulation Doesn't Matter: An Artificial Operational Floor in his Extra Credit, Sunday Edition. The post states, "It's important that hedge-fund regulation not give investors a false sense of security. Its main purpose is to look out for systemic risk, not ponzis." It can be read here at Portfolio.com
March 26, 2009
Canadian Hedgewatch publishes Corgentum research piece Caveat Emptor - The Elusive Definition of Hedge Fund Due Diligence
The Canada based hedge fund publication Canadian Hedgewatch has published the Corgentum research piece Caveat Emptor - The Elusive Definition of Hedge Fund Due Diligence in the March 2009 (Volume 9, Issue 3) monthly report. The Corgentum version of this piece is available in Corgentum.com's research archive or via the direct link here.
March 23, 2009
Director of Finance Online Covers Corgentum's New White Paper The Madoff Identity: A New Operational Due Diligence Paradigm In a Post-Madoff World
The UK based publication Director of Finance Online has posted Corgentum's new white paper The Madoff Identity: A New Operational Due Diligence Paradigm In a Post-Madoff world in its entirety on the Governance section of their website here. The Corgentum PDF version of the white paper is available in Corgentum.com's research archive or via the direct link here. This paper was also recently covered on the Fighting Fraud blog.
March 11, 2009
Trader's Narrative review's Hedge Fund Operational Due Diligence: Understanding the Risks
Trader's Narrative recently reviewed Hedge Fund Operational Due Diligence: Understanding the Risks. The review describes the book in part as follows, "Scharfman’s book explains not only how to diagnose and analyze the operational risks that may be present in a hedge fund, but how to continue to monitor them. This book is invaluable if you are running or thinking of starting a hedge fund, want to invest in one (or already have) or if you work in the field of asset management." The full review can be read on the Trader's Narrative website.
March 6, 2009
Infovest21's Fund of Funds Morning Seminar on Red flags in Madoff, Petters
and other Ponzi schemes will feature Corgentum's Jason Scharfman
The Bernie Madoff Ponzi scheme was just the tip of the iceberg. As the economy falters, similar schemes are surfacing across the US. This seminar brings together industry experts, operational due diligence experts and investigators. Corgentum's Jason Scharfman will be a panelst at the session entitled, Red flags in Madoff, Petters and other Ponzi schemes . Other session include Operational due diligence - Tools and best practices and Impact on investors and possible solutions . To learn about the program, which will take place on March 24, and register for the seminar please visit the Infovest21 website.
March 4, 2009
Jason Scharfman Sits Down With the Wall St. Journal's Compliance Watch
to Discuss How Fraud Has Prompted Increased Operational Risk Transparency
In an interview with Compliance Watch, Mr. Scharfman discusses how in the post-Madoff enviornment, hedge funds are generally now more inclined then they once were to share information about operational risk factors, including data such as terms of swaps and derivatives agreements. He also discusses how the potential size of an investment can make a difference in the level of operational risk transparency an investor receives. "You can understand hedge funds not giving information about their financial positions - but when it comes to operational issues, investors are inclined to ask, Why Not?," says Scharfman.The full article can be read at the Wall St. Journal's website (subscription required).
March 3, 2009
The Des Moines Register Discusses Iowa's
Exposure to Westrigdge Capital With Jason Scharfman
Jason Scharfman recently analyzed the potential losses of Iowa's largest public employee pension fund (IPERS) with the Des Moines Register. When asked about the potential of Iowa recovering a portion of its $339 million investment he said, "I think the majority of it is gone. So good luck to Iowa.” Mr. Scharfman went on to discuss the many red flags cited by federal investigators including the unusual financial structure utilized by placing hundreds of millions of dollars in promissory notes. The article can be read at the Des Moine Register wesbsite.
March 2, 2009
Jason Scharfman Discusses the Westrigdge Capital
and WG Trading Co. Scandal With the Pittsburgh Post-Gazette
Jason Scharfman, Managing Director at Corgentum Consulting, recently discussed the alleged fraudulent activities carried out by Paul Greenwood and Stephen Walsh at Westridge Capital and WG Trading Co. with the Pittsburgh Post-Gazette. "Clearly there were things people could have done on the due diligence side that people weren't doing” said, Mr. Scharfman. "It's obviously concerning that the SEC was in there twice and missed it." The full article can be read here.
February 17, 2009
AIMA Recommends Hedge Fund Operational Due Diligence:
Understanding the Risks in its Online Knowledge Centre
The Alternative Investment Management Association (AIMA) has listed Hedge Fund Operational Due Diligence: Understanding the Risks in the AIMA Bibliography located in the organization’s online Knowledge Centre.
February 3, 2009
Conde Nast Portfolio Discusses “10 Questions to Ask Your Fund-of-Funds Manager”
The Corgentum Consulting research piece, 10 Questions to Ask Your Fund-of-Funds Manager, was featured in Conde Nast Portfolio. “Clearly, some firms’ ideas of ‘thorough due diligence’ leave something to be desired,” states Felix Salmon in Market Movers. The column includes an interview with Jason Scharfman, Managing Partner of Corgentum.
January 26, 2009
HedgeCo.net Reviews Hedge Fund Operational Due Diligence:
Understanding the Risks by Jason Scharfman
Alex Akesson of HedgeCo.net has reviewed Hedge Fund Operational Due Diligence: Understanding the Risks by Jason Scharfman. She described the book as “informative” and “pretty much everything you need to run a hedge fund, from risk management to disaster recovery, all need-to-know material for both investors and hedge fund analysts.” The full review can be found here.
January 16, 2009
Corgentum Featured in Conde Nast Portfolio
The Corgentum Consulting research piece, What’s Wrong With Hedge Fund Operational Risk Ratings and Certifications?, as well as the book Hedge Fund Operational Due Diligence: Understanding the Risks by Jason Scharfman, were featured in Conde Nast Portfolio.
January 8, 2009
Hedge Fund Law Report Reviews Hedge Fund Operational Due Diligence:
Understanding the Risks by Jason Scharfman
An extensive review of Jason Scharfman’s book, Hedge Fund Operational Due Diligence: Understanding the Risks, can be found in the current issue of The Hedge Fund Law Report.
December 15, 2008
Jason Scharfman to Lead Two Sessions on Hedge Fund Operational Due Diligence
at GAIM Ops Cayman 2009 Conference
It has been announced that Jason Scharfman, Managing Partner of Corgentum Consulting, LLC, will moderate two sessions at the fourth annual GAIM Ops Cayman conference. The first session, “Post Credit Crisis – A Series of Case Studies in Risk Management” will take place on the first day of the conference and will focus on:
- A new level of shareholder activism and how it can reduce overall risk
- Increasing returns through operational risk partnerships with hedge fund investors
- Techniques for diagnosing and reducing Operational DragSM
- Balancing on-going operational activism versus transparency concerns
The second session, “Hedge Fund Round Table – How To Prepare For the Due Diligence Visit” will take place on the second day of the conference and bring together high level representatives and leading figures from the alternative investment industry to discuss their concerns for the upcoming year and future of alternative investments.
GAIM Ops Cayman attracts more than 500 senior delegates annually and is the largest hedge fund operational due diligence, compliance and risk management event. The conference will be held from April 26–29, 2009 at the Ritz Carlton Grand Cayman. An agenda for the conference can be viewed here.
September 7, 2008
CFA Magazine Recommends Hedge Fund Operational Due Diligence:
Understanding the Risks
In an article by Ed McCarthy located in the “Private Client Corner” in the September–October 2008 edition (Vol. 19, No. 5) of CFA Magazine, Jason Scharfman’s Hedge Fund Operational Due Diligence: Understanding the Risks (John Wiley & Sons, Inc. 2008) is listed as a recommended resource. The article can be viewed online here.