Publications

Hedge Fund Operational Due Diligence:
Understanding the Risks

Jason Scharfman, Managing Partner,
Corgentum Consulting, LLC

Filled with real-world examples drawn from the author’s experiences dealing with the operational risks of a global hedge fund platform, Hedge Fund Operational Due Diligence: Understanding the Risks clearly outlines a flexible framework to enable you to diagnose a hedge fund’s operational risks. This user-friendly, step-by-step guide shows you how to effectively detect and evaluate often-overlooked operational risk factors in hedge funds, such as multijurisdictional regulatory coordination, silo creation, operational drag, organizational nesting, and vaporware, to equip you with a complete understanding of the importance and benefits of a comprehensive operational due diligence program.

Overview

Features an analysis of the failed Bayou Hedge Fund Group, highlighting how operational risks can bring down an organization
Explains how to diagnose and analyze the operational risks that may be present in a hedge fund
Covers the primary, secondary, and blended operational risk factors present in the vast majority of modern hedge fund organizations
Offers techniques for the modeling of operational risk
Explores how to factor the results of operational risk analysis into the overall hedge fund asset allocation process
Recommended by CFA Magazine
Release date: December 3, 2008