What Quality Due Diligence Looks Like

by Johnny Debacle

Fairfield Greenwich Group

As a follow-on to my previous post, I wanted to give investors an idea of what quality due diligence looks like in a handy to read chart. This is exactly the kind of process that would ensure that investors are the victims of neither investment mismanagement nor fraud. Hat tip for the picture to a firm called Fairfield Greenwich Group.

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  1. December 18th, 2008 | 5:16 pm

    This is what drunken due diligence is all about.

  2. american bandersnatch
    December 18th, 2008 | 5:30 pm

    Good due diligence is highly symmetrical.

  3. Atticus Flinch
    December 18th, 2008 | 6:04 pm

    Elegantly designed circle-jerk

  4. john haskell
    December 18th, 2008 | 7:06 pm

    stop it, stop it, I’m going to crack a rib!

  5. Platinumfinger
    December 18th, 2008 | 8:38 pm

    Yeah FFG has an awesome Due Diigence cost only 7,500,000,000 USD with the Madoff thing

  6. HF
    December 19th, 2008 | 7:30 am

    I belive that the great majority of due deligence that is made by Investors is just a waste of time: you analize the returns the manager sends to you, you call the contacts he lists, you read the information he mails you…

  7. December 19th, 2008 | 8:16 am

    But your proxy or you OUGHT do things like check the auditor of the manager as one example. In this case, due diligence by the proxies was negligent and should have stopped it in the bud. Ask someone who does DD like the first poster — this should have been a no-brainer no.

  8. December 19th, 2008 | 9:39 am

    But they don’t teach due diligence at Midwest Minnesota Southeast Coasta University of the South Law School!

    (or HBS, but I digress)

  9. December 19th, 2008 | 12:49 pm

    Do people really still read this site?

  10. JCauto
    December 19th, 2008 | 12:53 pm

    @ 6

    “Analizing” the returns is an apt euphamism for what happened to Madoff’s clients.

    @ Juggles

    YES! When you actually update with quality posts, like you have been lately. We miss you when yuo’re away…:(

  11. December 19th, 2008 | 2:02 pm

    Just responding to this exchange that I saw on DB

    “2 Posted by guest, Dec 19, 2008 12:03PM

    At least credit longorshortcapital, they had it up yesterday.
    3 Posted by guest, Dec 19, 2008 12:05PM

    hahaha… Spitzer was fucked in the ass by Madoff… The Spitzer clan had a bad weekends at Bernies…
    4 Posted by guest, Dec 19, 2008 12:07PM

    @2- people still read that site”

    I thought it was pretty amusing.

  12. Strattie
    December 21st, 2008 | 5:46 pm

    Fuck! All this time I’ve been busting my ass doing due diligence right and everyone been busting on me. So suck it! Where is your Berniefund now bitches?! You can’t smell crappola when it’s right in front of your nose!

  13. Barnum
    January 2nd, 2009 | 10:57 am

    I came across this new book in CFA magazine. Good no-nonsense guide to hedge fund due diligence:

    Hedge Fund Operational Due Diligence: Understanding the Risks (Jason Scharfman)