Hedge fund due diligence

A practical review sequence for identity, terms, operations, conflicts, performance evidence, and risk.

Verify the legal and regulatory identity

Match the adviser legal name, CRD, SEC file number, private-fund identifier, vehicle, auditor, administrator, and offering documents before evaluating a track record.

Reconcile claims to evidence

Ask how returns are calculated, whether they are audited, which vehicle and share class they describe, and how fees, leverage, valuation, liquidity, and survivorship affect the comparison.