The Appendix Of The Hedge Fund Industry

Best practices require hedge funds to pay people to serve as directors. In actual practice, investors would just as soon do without them—unless they’re allowed to sue them.

Corgentum Consulting, a provider of hedge fund operational due diligence reviews and background investigations, reported last week that 73% of investors and operational due diligence analysts surveyed felt directors did not serve a useful function.

Worse, 76% said directors did not provide true independent oversight of funds….

“Compounding the problems, 62% of the group surveyed felt directors didn’t have much credibility with fund managers,” he said….

Seventy-one percent of investors and operational due diligence analysts surveyed felt that directors should be held personally liable if a fund failed for operational reasons.

Hedge Fund Directors Are Useless, Most Investors Say [ThinkAdvisor]

No comments (hidden to protect delicate sensibilities)
Show all comments ↓

Comments are closed.