Corgentum’s Scharfman Discusses Administrator Conflicts of Interest and Due Diligence with Forbes
A recent article in Forbes, discusses some of the risks to investors surrounding hedge fund administrator conflicts of interest.
The article is entitled, “Protection Racket – Investors rely on independent administrators like Citco to okay hedge fund books. But who’s watching these bookkeepers?” .
The article features Corgentum Consulting Managing Partner, Jason Scharfman discussing the role of hedge fund administrators in the investor operational due diligence process. Mr. Scharfman says, “ Part of the reason big-name administrators are winning more hedge fund assets is that they offer a false appearance of comfort and illusions of due diligence. Investors are still very much on their own in the hedge fund arena, ” says Mr. Scharfman.
The full article can be read on Forbes.com , in print editions of Forbes magazine for the week of April 25, 2011 or via direct link.
Focus on Operational Risk and Due Diligence: Corgentum Discusses Operational Risk with HFMWeek
A new article this week in HFMWeek focuses on operational risk and operational due diligence in hedge funds. Corgentum Consulting Managing Partner, Jason Scharfman is featured this week in the article.
In the article, which is entitled “Focus on Operational Risk” Mr. Scharfman discusses the enhanced focus which investors and hedge funds have placed on operational risk management and operational due diligence in the aftermath of the financial crisis.
Mr. Scharfman also cites Corgentum’s proprietary research which demonstrates an increasing trend that managers with weaker operational infrastructures demonstrate lower performance as opposed to those with stronger operations. Other key operational risk considerations outlined by Mr. Scharfman in the article include:
- The presence of conflicts of interest related to providing operational due diligence services to both hedge funds and investors
- The dangers of over reliance on hedge fund regulation to supplant investor’s own due diligence efforts
- Ways in which investors can benefit from having an independent third party consultant such as Corgentum assisting with operational due diligence reviews
- The benefits to a hedge fund’s operations of proper internal resource allocation and management oversight
The article can be found in print editions of HFMWeek at HFMWeek.com, or via direct link.
Corgentum Releases Guide To Understanding Your Hedge Fund’s Approach to Prime Brokerage
Corgentum Consulting has released a new guide providing an overview to hedge fund’s approaches to prime brokerage. This paper provides an overview of the operational risk and challenges which prime brokerage presents hedge funds.
Understanding Your Hedge Fund’s Approach To Prime Brokerage also discusses investor operational due diligence considerations for utilizing multiple prime brokers, the role of introducting prime brokers and bundled prime brokerage services.
The paper can be found in the Research section of the corgentum.com website, or via direct link here.
