Hedge Fund Due DiligenceThis is a program aimed at those who wish to broaden their understanding of the hedge fund industry and specifically examine issues related to hedge fund and fund of funds due diligence. |
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| This course is ideally suited for anyone who works (or is considering working) in the hedge fund industry. The course also provides essential information for those individuals who work for prime brokerages, law firms, accounting and audit firms, fund of funds, family offices, pensions, endowments, fund administrators and any other organization that provides services for, or invests directly in hedge funds. |
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| No advance preparation required. |
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Students will be able to:- Describe and have a thorough understanding of the hedge fund and fund of fund due diligence process
- Be able to complete the due diligence process for both a hedge fund and fund of funds
- Distinguish between the quantitative and qualitative risk measurements
- Identify the red flags to look for during and after the due diligence process
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| This program assumes that participants have a basic knowledge about the hedge fund industry. Participants with no knowledge of the hedge fund industry may wish to consider attending - Introduction to Alternative Investments - or - Hedge Funds - prior to attending this course. |
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| Advanced Hedge Funds and Topics |
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Session 1 - Due Diligence Overview- What is due diligence and to whom does it matter
- The Art and the Science of due diligence
Session 2 - Due Diligence Process- Basic facts about the fund
- - Legal structure
- - Registrations
- - Outside service providers
- - Organization of fund
- - Fees
- - Lock ups and redemptions
- - Subscription amount
- Strategy review
- - Understanding the investment philosophy, strategy and process
- - Objective and strategy
- - Investment process
- - Investment markets and securities
- - Competitive advantages
- - Current portfolio and style drift
- - Capacity
- Risk Analysis
- - Risk management measures
- - Liquidity issues
- - Leverage
- Operational issues
- Performance review
- - Measures of risk and return
- - Withdrawals
- - Draw downs
- Personal facts and background checks
- Coninual monitoring
- - Portfolio monitoring
- - Loss of key personnel
- - Redemptions and capacity
- - Under and out performance
- - What does an audit reveal
Case Study - Analysis of hedge fund documentation and resultsSession 3 - Regulatory Environment- Relevant agencies
- Key regulations
- Hedge fund documentation and form ADV
- Proposed changes
Case Study - Analysis of form ADVSession 4 - Fund of Funds- What is a fund of funds
- Why is the due diligence process different for a FoF
- What are the risk controls and risk measurement process
- What are the responsibilities of handling regulatory compliances, background checks and reviewing documents
Session 5 - Fund of Funds - What should they be doing? - 10 questions to ask- Appropriate resources
- Intensity
- Documentation
- Scope
- Qualifications
- Diverse skills sets
- On going monitoring
- In house or outsourced
- Service providers
- Previous examples
- Recent debacles - how could they have been detected and prevented
- - Bernard Madoff
- - Arthur Nadel
- - Other pertinent cases
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| Clients who register for this course will receive a complimentary 4-month subscription to FT.com. The Financial Times is the world's most respected financial newspaper, providing a broad assessment on finance, business and the industrial sector. The move to the electronic version follows an ongoing review of our environmental responsibilities as a global business and as part of the Pearson group. FT.com also has features that are not available in hard copy, such as: Special Reports, Alphaville, editor blogs, education sections and much more! Subscriptions will start within 6-8 weeks of the start of class and are limited to one subscription per client. (Please note: as of May 1, 2011, the electronic subscription replaces the hard-copy 3-month Financial Times subscription.) |
Lunch is included for all students taking day classes. |
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