Christian Nauer, CEO of SwissAnalytics, was featured in the March 2017 Hedgeweek Special Report on the Swiss hedge funds industry.
Christian's comments focused on the importance of ongoing due diligence.
“Our advice to investors is, ‘Establish a clear due diligence program and have a consistent framework and policy to determine how to monitor every third party fund. A well drafted due diligence policy will specify how and when to conduct due diligence and how to escalate issues which could arise on either the investment or operational side.’”
Once invested, an effective ongoing due diligence program will consider frequency, timeliness, completeness, consistency, and objectivity.
“Risk-based approaches are a smart way to define the frequency of ongoing reviews as a function of the risk – be it asset class risk, manager specific risk, or the size of the allocation.”
Christian's comments can be accessed below.