Buyer be wary...

operational due diligence

Effective operational due diligence on hedge funds may be the one form of checks and measures for which a hedge fund investor is not directly rewarded.

However, with 56% of hedge fund failures coming down to a failure of operational processes, according to a seminal study by Capco, it is a crucial part of successful investing in the less-heavily regulated sector.

This was the message, along with chilling examples, given by Peter Wisard, a partner at Zurich's Aicons AG independent due-diligence