Operations to blame for fund failures

More than half all hedge fund failures over the past 20 years have stemmed from operational issues such as inadequate trade processing, accounting, administration, valuation and reporting, according to a study from Capco.

The analysis of more than 100 funds that have been forced to close for reasons beyond the manager's control, found 85% of the closures had as implicit causes operational issues such as misrepresenting fund investments in valuations or reports, misappropriating investors' money,