Recommended Reading List

RESEARCH PAPERS (in reverse order of published date):

• BROWNE, Mark, “How Irish Regulated Hedge Funds can Help Eliminate AIJ-type
  Investment Scandals“, Mason Hayes & Curran, May 2012
  

• KURDAS, Chidem, “Does Regulation Prevent Fraud? The Case of Manhattan Hedge Fund“, The Independent Review, v. 13, n. 3, Winter 2009

• “From Manhattan to Madoff: The Causes and Lessons of Hedge Fund Operational Failure“, Castle Hall Alternatives, 2009

• BROWN, et al, “Estimating Operational Risk for Hedge Funds: The ω-Score”, Yale ICF Working Paper No. 08-08, May 2008

• BROWN, et al, “Hedgge Fund Due Diligence: A Source of Alpha in a Hedge Fund Portfolio Strategy”, NYU Working Paper No. FIN-07-032, Jan 2008

• BROWN, et al, “Trust and Delegation”, NYU Working Paper Series, April 16, 2011

• “Principles for the Valuation of Hedge Fund Portfolios“, International Organization of Securities Commissions, Nov 2007

• CAGAN, Penny, “Operational risk red flags: Lessons learned from ten hedge fund blow-ups”, Journal of Securities Operations & Custody, Sep 6, 2007

• “Understanding and Mitigating Operational Risk in Hedge Fund Investments“, The Capital Markets Company Ltd., Mar 2003

BOOKS:

SHAIN, Randy, “Hedge Fund Due Diligence”, John Wiley & Son, Inc., 2008

• An exceptional book, which explains very useful techniques and tools for background investigation. You will be worried if Shain can keep his business after sharing so many “secret recipes” of background checks.

SHARFMAN, Jason, “Hedge Fund Operational Due Diligence – Understanding the Risks“, John Wiley & Son, Inc., 2009

• Anyone who conducts operational due diligence should read this book and learn from Sharfman’s deep insights and rich experiences. The book lists many unique examples, which practitioners should face at some point of his or her career.  It also helps you to build a framework how to implement findings from operational due diligence into the final decision making.

 

BLOGS:

Due Diligence Review Corp (http://www.diligencereviewcorp.com/)

• A newly launched website (as of May 2011), which published an informative white paper on Form FP (“Form FP and Hedge Fund Investors“)

Teri Buhl’s Wall Street Unplugged: The News They left Out (http://www.teribuhl.com/)

• Teri is a Hercule Poirot in the hedge fund industry today, who chases bad actors one after another. She has a very unique and valuable network and information source to identify hedge fund frauds much earlier than most of investors realize they are in a big trouble.