Hedge fund managers and investors alike have embraced separate account management as a panacea to their operational risk concerns and a quick win in the quest for greater transparency. But they should think again. In their rush to solve one set of problems, investors may be introducing even greater risks to their portfolios and hedgeContinue reading “Hedge Fund Transparency: The Long-Term Implications of Separate Account Management”
Tag Archives: Operations
Critical Recordkeeping: Trade Tickets and Order Memoranda
It is remarkable the number of buy-side firms that have overlooked the importance of maintaining proper trade tickets and order memoranda in a timely fashion. Three weeks ago, the US Securities and Exchange Commission (SEC) charged New York-based Ark Asset Management Co., Inc. with fraudulent trade allocation as well as disclosure and books-and-records violations. ThisContinue reading “Critical Recordkeeping: Trade Tickets and Order Memoranda”
Forgotten Risk: Free Delivery of Securities
While most operational due diligence reviews focus significant attention on the procedures involving wire transfers, they often overlook those surrounding the free delivery of securities. Yet both activities involve the transfer of assets out of a fund or portfolio with nothing received in exchange.
Top 10 List for Mastering Operational Due Diligence
This is from a presentation at Financial Technologies Forum’s 2nd Annual Hedge Fund and Operations Conference on 21 April 2009. While it is just a list of bullets, it is included here for the convenience of our readers.
Stone House Consulting, LLC 