Corgentum outlines the importance of recognizing a hedge fund’s operational stengths and weaknesses with Risk.net’s Operational Risk & Regulation Journal
The recent comments of Jason Scharfman, Corgentum Consulting Managing Partner regarding the enhanced focus being placed by investors on hedge fund operational risk were outlined in Risk.net’s Operational Risk & Regulation Journal in an article entitled, Operational infrastructure at hedge funds comes under closer scrutiny .
Topics outlined by Mr. Scharfman in the article include:
- Continued failures of many hedge fund with in regards to documenting operational policies
- Benefits of hedge funds emphasizing their operational strengths and openly discussing operational weaknesses
- The false artifical operational floor of Dodd-Frank legislation
- Inherent benefits of investors develop dialogues concerning operational risks with their hedge fund managers
The full article can be read on the Risk.net’s Operational Risk & Regulation website (subscription required).
Corgentum highlights the importance of robust hedge fund operational policies and valuations procedures with Opalesque
A recent Opalesque article outlined the recet the comments of Jason Scharfman, Corgentum Consulting Managing Partner on the subject of trends in hedge fund operational risk.
In the article, which is entitled 20% of marketing presentation should be dedicated to investor education , Mr. Scharfman outlines in part that, “[managers] need to have a robust operational policy (from pricing sources, to valuations, to how the administrator receives that information, to cash management policies).”
The full article can be read on the Opalesque website (subscription required).
Corgentum’s Overview of Material Nonpublic Information Operational Due Diligence Considerations For Hedge Funds in the US
Corgentum Consulting has released a new paper entitled, Hedge Fund Operational Due Diligence Education Series – Understanding Material Nonpublic Information in the United States.
With the recent raids of the offices of three hedge fund managers by the Federal Bureau of Investigation and the on-going prosecution of Raj Rajaratnam’s Galleon Group, cracking down on allegedly illegal insider trading is clearly on the forefront of the U.S. government’s financial regulatory agenda. Here is a video from CNBC concerning the recent FBI raids:
Hedge Fund Operational Due Diligence Education Series – Understanding Material Nonpublic Information in the United States provides an introduction to the ways in which hedge fund’s may interact, either directly or indirectly, with material nonpublic information. Areas addressed in this paper include a hedge fund’s use of expert networks as well as other third-party firms which provide information to hedge funds. Also discussed in this paper are several questions investors should address during the operational due diligence process in order to diagnose both a fund’s potential exposures to the risks associated with material nonpublic information as well as what preventative measures, if any, a hedge fund may have taken to insulate themselves for the liability associated with receiving or trading on such information.
The paper can be found in the Research section of the corgentum.com website, or via direct link here.
