The Operational Due Diligence assessment team will carry out operational due diligence on funds and fund companies. They will be responsible for ensuring that the fund is an appropriate vehicle from an operational perspective for clients.
What was once a short process has become lengthy and detailed, encompassing both qualitative and quantitative aspects of a fund and its performance. Analysis of a fund starts with a qualitative look at its people, process and philosophy. These elements comprise the backbone of all funds and are the source of their performance.
People: This is typically the most important and decisive element of the due diligence process. Investors want to know who the decision makers are at a fund and where they received their training. A hedge fund manager’s experience and pedigree are important in establishing his or her expertise.
Process: Investors want to know that a manager has a proven process in place — from idea generation, through research and portfolio construction, to risk management. Managers must be able to articulate their process in a concise manner and convey to investors that a fund’s performance is consistent and repeatable.
Philosophy: A fund’s philosophy is what differentiates it from the competition. To communicate a fund’s philosophy effectively, a manager should focus internally on the aspects critical to its investing process. Investors want to understand where managers allocate the majority of their time and where they have true expertise.
These three main qualitative factors build a framework for a fund and are the first of a multi-step due diligence process that Amici will undertake.
Please contact one of our customer service advisers for more information: