Decline of FoHFs saps due diligence efforts

Investment consultants accused of offering poor substitute to decent research

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The ability of due diligence firms to root through the public records of hedge fund employees has never been easier, with a number of specialist private investigation firms offering their services to hedge fund investors to help them understand the true risks of their investments.

Investigators say they have uncovered drug-taking, strip-club photos, bogus degrees, hidden jobs, covered-up bankruptcies and casino binges. What happens in Vegas, it seems, may not stay in Vegas.

The inquiries do not al