Hedge Fund Investing
Prior to entering into a relationship with a hedge fund manager, it is obviously important for the investors and service providers to conduct due diligence with regard to the managers background and current operation. The outline provided below is an overview of various issues that should be reviewed prior to entering into a relationship with a hedge fund manager. This outline is general in nature and does not purport to be complete or tailored to the circumstances of any specific manager or client. Prior to adopting any specific course of action in reliance on this article, we suggest that you contact legal counsel.
Understand the Structure of the Organization
- Determine who controls the General Partner/Investment Manager - Look through the corporate entities to the individuals
- Determine other vehicles managed by the General Partner/Investment Manager and/or the individuals involved
- Ascertain what, if any, conflicts of interest the General Partner/Investment Manager and/or the individuals involved have (e.g. transactions with affiliates)