Cleaning up the ODD way
Increased regulatory demands, new product innovations, and greater outsourcing options have changed the operational burdens of managing hedge funds and contributed to tighter margins.
Due to these changes in the hedge fund landscape, it is important for hedge fund investors to have strong and effective operational due diligence (ODD) programmes.
Effective ODD programmes should not only identify pre-investment issues, but continue to hold hedge fund managers accountable for adapting to the changing landscape.