One in five hedge fund managers misrepresents their fund or its performance to investors during formal due diligence, according to New York University’s Stern School of Business. Using confidential data taken from 444 due diligence reports commissioned by investors between 2003 and 2008, Stern academics analysed hedge fund managers’ representations and identified “noted verification problems”, characterised as “misrepresentations or inconsistencies”, in 42% of due diligence reports.

This entry was posted by Gwen Robinson on Wednesday, October 14th, 2009 at 4:38 and is filed under Capital markets, Hedge funds. Tagged with Stern. Edit this entry.