Investors show more diligence

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Until the Madoff affair, many thought the cursory due diligence process was enough to safeguard investment. No longer. While too many are still not conducting thorough due diligence, it has become a top priority for the majority of investors. The process now encompasses not only the fund itself but also its service providers – a consequence of the demise of Lehman Brothers, which also caught out a lot of people who had not taken counterparty risk seriously.

“The Madoff affair highlights that cond