Due diligence for independent administrators

Solid administration is becoming increasingly vital to hedge funds, but with so many providers on offer, selecting the right one is a challenge, says Trinity Fund Administration's John McCann

The words "hedge fund fraud" may make for a snappy title in the trade and general media, however when taken in the context of the number of hedge funds worldwide, the actual incidence of such fraud is very small,

Nonetheless, one hedge fund fraud is one hedge fund fraud too many - especially if you happen to be the investor.

A common factor in a number of recent cases, most if not all of which involved US managers, has been the absence of an independent third-party administrator.

Writing recently