Consultant Selection

These are fundamental principles, regardless of the nature of the organization or the size of the fund. There are many ways to apply these basic principles, and the rest of this paper is devoted to discussing the many effective approaches in applying them.

 

 

 

 


 

Investment Committees

Investment CommitteesBest Governance Practices breaks new ground in the breadth of its Best Practices. It benefits from many veteran Investment Committee members who shared their Committee experiences, and from the interdisciplinary contributions of the Greenwich Roundtable's Education Committee. 

 

 

 

 


Avoiding Mistakes

"Avoiding Mistakes" has been contemplated for many years as an addition to our Best Practices series, which has centered on the up-front manager selection due diligence and portfolio construction processes. This piece takes an original and more practical approach than found in media reports as it moves beyond the headlines to examine warning signs of potential trouble in funds, yellow and red flags that investors need to consider in their diligence and monitoring processes.

 

 

 


Managing Complexity

This white paper will focus mainly on the complexities inherent in alternative investments. But many of these complexities share roots with the same ones that existed in the simpler days, and they still apply to the more traditional parts of our portfolios today. The use of alternative investments has simply compounded the complexities.

 

 

 


Due Diligence

The Searing pain many investors suffered during the global financial crisis of 2008 provided sark lessons for us. Many of the worst losses — headlined by the stunning collapse of Bernie Madoff's Ponzi scheme — could not have happened if investors had undertaken the kind of investment and operational due diligence each of us should do before entrusting our money to another person, especially a manager of alternative assets such as a hedge fund or a private illiquid investment fund.

 

 


Portfolio Construction

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Greenwich Roundtable members practice a different investing approach with an active management style in alternative investments such as hedge funds, private equity, real estate, and commodities. We have written on the art and science of finding, evaluating, and hiring talented managers. We now turn our attention to building and managing a portfolio of alternative investments.    

 

 

 


Due Diligence For Fixed Income and Credit Strategies

The Education Committee of the Greenwich Roundtable began our investigation of due diligence almost eight years ago and was motivated by an elegantly simple thesis: the topic had not been explored in a comprehensive, informed way from the perspective of the hedge fund investor as opposed to the hedge fund manager. We believed the topic of due diligence deserved a more searching and substantive written review and set out to rectify this.
 
 
 
 
 

This white paper was written to help distill the primary aspects of hedge fund due diligence, structure the topics in a sensible order of importance and capture both the vocabulary and thought patterns that typical inform experienced investors. In the end, we hope we have distilled a number of valuable investor insights and contributed some effective disiplines to address this insufficiently examined problem.