Institutional investors need to focus more on operational risk processes when choosing hedge fund managers, according to new research.
The full report commissioned by The Bank of New York in conjunction with Amber Partners: Hedge Fund Operational Risk: Meeting the demand for Higher Transparency and Best Practice is available to view at www.bankofny.com.
According to the report, the recent dramatic increase in alternative investments inflows by institutional investors and the rapid maturation of the industry’s infrastructure has increased the need for investors to assess the operational systems of their potential hedge fund provider. Investors also need to put into place stringent due diligence procedures to ensure regulatory compliance and to monitor business practices.
Hedge Fund Operational Risk: Meeting the demand for Higher Transparency and Best Practice analyses the five key operational considerations that investors should evaluate
