NEW YORK, Nov. 19, 2014 /PRNewswire/ -- Corgentum Consulting, the leading provider of the industry's most comprehensive hedge fund operational due diligence reviews and background investigations, today announced the release of a new book on hedge fund governance by Jason Scharfman (Managing Partner). Hedge Fund Governance: Evaluating Oversight, Independence, and Conflicts (Academic Press) describes essential techniques investors can employ to effectively analyze and monitor governance in hedge funds.
"Investors no longer feel that governance is static, but a highly dynamic area of hedge fund investing that they should focus on" said Scharfman. An authoritative reference on governance, the book begins by highlighting the benefits and risks of the hedge fund board of directors, a traditional focus of investor governance analysis. Investors are next provided with a framework to conduct deep dive due diligence on directors.
Hedge Fund Governance also features interviews with leading fund directors including first-hand tips for investors on how to conduct due diligence on directorship firms. George Bashforth, Head of Directorship Services at Appleby Trust (Cayman) Ltd. and one of the directors featured stated, "This book provides meaningful insights for investors and due diligence analysts as they increasingly engage with directors as part of their governance analysis."
Going beyond fund directors, the book also provides investors with hands on approaches to review internal governance efforts at hedge funds and their service providers including prime brokers and administrators.
Additionally, to provide a regulatory perspective on the current state of hedge fund governance, interviews are also included with the Malta Financial Services Authority and the Cayman Islands Monetary Authority (CIMA). These interviews include discussions of the results of the recent Hedge Fund Corporate Governance Survey and perspectives on director database proposals.
"A good governance structure can add real value to a hedge fund and increase investor protections from a wide variety of risks ranging from fraud and compliance violations to valuation errors," commented Scharfman. "This books shows investors how to enhance their due diligence process to select funds that have best practice governance."
Other critical topics covered include:
- Case studies of hedge fund governance failures including Weavering Capital, Madoff's UK operation and AIJ Japan
- The influence of GRC (governance, risk and compliance), ESG (environmental, social and governance) and SRI (socially responsible investing) frameworks on governance analysis
- Governance considerations for analyzing hedge fund valuation, bankruptcy and liquidation approaches
Scharfman is also the author of "Hedge Fund Operational Due Diligence: Understanding the Risks (Wiley Finance, 2008)" and "Private Equity Operational Due Diligence: Tools To Evaluate Liquidity, Valuation and Documentation (Wiley Finance 2012)."
Hedge Fund Governance: Evaluating Oversight, Independence, and Conflicts is available for purchase in bookstores and on Amazon.com.
About Corgentum Consulting
Corgentum Consulting is a specialist consulting firm that performs operational due diligence reviews and investigative due diligence reviews of fund managers and directors. The firm works with investors including fund of funds, pensions, endowments, banks and family offices to conduct the industry's most comprehensive operational due diligence reviews. Corgentum's work covers all fund strategies globally including hedge funds, private equity, real estate funds and traditional funds. The firm's sole focus on operational due diligence allows Corgentum to ensure that the firm's clients institute best practice due diligence and avoid unnecessary operational risks. For more information visit www.Corgentum.com
About Jason Scharfman:
Jason Scharfman, Esq., CFE, CRISC is the Managing Partner of Corgentum Consulting. He is recognized as one of the world's leading experts in the field of operational due diligence. Before founding Corgentum, Scharfman held positions focused on due diligence and risk management at Morgan Stanley, Lazard Asset Management, SPARX Investments and Research, and Thomson Financial. He has provided training to financial regulators, and has testified as an expert in hedge fund litigation. Mr. Scharfman has lectured on the subject of hedge fund operations and operational risk as an adjunct professor at New York University.
SOURCE Corgentum Consulting