Operational Due Diligence: New Challenges For Hedge Funds

The Third Annual Operational Due Diligence Survey Summer 2014 by Deutsche Bank Global Prime Finance drew responses from more than 70 investor entities across the globe managing investable funds of over US$ 2.72 trillion. Of this nearly US$ 730 billion was allocated to hedge funds.

“The environment in which investors answered the survey is one of continued regulatory pressure as the alternatives industry adapts to the impact of global regulation. Additionally, the business model of hedge funds is becoming ever more institutional, converging with their peers in the broader asset management industry. These changes mean hedge funds face greater challenges in handling regulatory, reputational, business and operational risk,...