Identifying warning signs of operational weakness in hedge funds and exercising rights as an investor

Korek, Julian; Alsbro, Ann-Sofie

Practice paper

Identifying warning signs of operational weakness in hedge funds and exercising rights as an investor

Julian Korek and Ann-Sofie Alsbro

Journal of Securities Operations & Custody, 1 (1), 21-32 (2007)

https://doi.org/10.69554/HUYD9764

Abstract

This paper outlines operational risk issues in hedge funds and identifies warning signs that might indicate operational weakness. It draws investors' attention to topics that should be addressed during due diligence processes, as well as during ongoing monitoring after an investment has been made. The paper also discusses investors' limited rights in case of a hedge fund blow-up and the steps that are available to them to increase the possibility of asset recovery.

Keywords: operational risk; valuation; due diligence; offering material; risk management; listing; blow-up; hedge fund

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Citation

Korek, Julian and Alsbro, Ann-Sofie (2007, October 1). Identifying warning signs of operational weakness in hedge funds and exercising rights as an investor. In the Journal of Securities Operations & Custody, Volume 1, Issue 1. https://doi.org/10.69554/HUYD9764.