Few would dispute that funds of hedge funds (FoHFs) have by and large failed to live up to their billing in recent years.
The Madoff fraud exposed the weak operational due diligence procedures of many FoHFs and left the industry as a whole with a black eye. FoHFs have responded by tightening operational due diligence and insisting that hedge fund managers appoint third parties to verify and price their holdings.
The more complex challenge is addressing the risk management failings that left many
The week on Risk.net, December 2–8, 2017Receive this by email