Buyer be wary...
Investors often miss hedge funds' simplest warning flags, and so can only blame themselves when a fund collapses for a reason that could have been spotted in the course of due diligence
Effective operational due diligence on hedge funds may be the one form of checks and measures for which a hedge fund investor is not directly rewarded.
However, with 56% of hedge fund failures coming down to a failure of operational processes, according to a seminal study by Capco, it is a crucial part of successful investing in the less-heavily regulated sector.
This was the message, along with chilling examples, given by Peter Wisard, a partner at Zurich's Aicons AG independent due-diligence and
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