Due Diligence

Due Diligence

Due diligence is a vital component of any investment decision-making. Our objective is to develop a deep and broad understanding of what our clients are buying, and to highlight the opportunities and the risks. Where possible we aim to provide our clients with solutions and advice on how to overcome or mitigate these risks.

Our due diligence services encompass hedge fund, private equity, real estate investments, and any other complex alternative strategies. We are able to provide customised investment and operational due diligence services on an individual investment, a collection of investments or covering an entire portfolio, or simply database access. Our portfolio solutions include the ongoing monitoring and due diligence of new managers chosen by our clients (please see Alternative Investments).

If you are a manager and would like to be in touch with us, please submit any materials to fundresearch@mjhudson.com.

The structure and focus of our investment due diligence is to ascertain how the fund offering differs from its peers by investigating, amongst other elements, the quality and background of the personnel, their investment philosophy, investment process, risk management and its track record.

Our operational due diligence approach focuses on the fund’s corporate governance and oversight, its operations and valuations processes and procedures, risk management framework, corporate functions and the use of third party service providers. Our approach is based on our proprietary tried and tested Moody’s Operational Quality Rating methodology to which we have exclusive access.Our framework for OQ assessments of hedge funds includes five categories:

Each due diligence review must go through our governance process. Our due diligence findings and report on the fund are presented to our senior research committee, which ultimately assigns investment and operational ratings to the each fund.

Our unique business structure and internal processes allows us to bring in industry experts where investments are more esoteric.