Due Diligence for Crypto Hedge Funds
Investing in crypto hedge funds can be complex and risky. Our comprehensive Operational and Investment Due Diligence service provides you with the critical information you need to make informed investment decisions.
To identify suitable crypto hedge funds that align with your investment objectives.
We administer a comprehensive questionnaire with over 130 questions to the fund, covering all aspects of its operations and investments.
We conduct a thorough analysis of the fund's responses, drawing on our deep expertise in crypto hedge funds.
We hold a call with the fund's management team to discuss their responses to the questionnaire, ask critical follow-up questions, and gain further insights.
We compile our findings and analysis into a final report, which includes an executive summary, a confidence score from 1 to 10, and a short profile of the fund.
What We Analyze
Strategy & Unique Selling Proposition (USP)
- Evaluation of the fund's investment strategy and its unique value proposition in the market.
- Analysis of the fund's competitive positioning and differentiation to its direct peers.
- Detailed analysis of the fund's historical performance, including returns, volatility, and risk-adjusted performance.
- Benchmarking of the fund's performance against its peers and relevant market indices.
- Assessment of the fund's technology infrastructure, including custody and security measures for crypto assets.
- Evaluation of the fund's cybersecurity measures, including security governance systems.
- Review of the fund's use of Portfolio Management Systems (PMS) and Order and Execution Management Systems (OEMS).
- Review of the experience, track record, and crypto knowledge of the fund's management team.
- Negative news check about the management team. Have any team members been involved in questionable activities in the past?
- Assessment of the team's alignment of interests with investors.
- Evaluation of the fund's counterparty exposure, including relationships with exchanges, OTC desks, and other counterparties.
- Review of the fund's volatility management strategies, including use of hedging and derivatives.
- Analysis of any rules-based risk management, such as position limits, exposure limits, and stop-loss orders.
- Assessment of the fund's compliance with relevant regulations, with a particular focus on the crypto-friendliness of the regulatory environment.
- Review of the fund's audit history, including dates and outcomes of audits.
- Review of the fund's relationships with key service providers, such as administrators, depository banks, legal advisors, and auditors.
- Assessment of the fund's due diligence processes for selecting and monitoring service providers.
- Analysis of the fund's subscription and redemption terms, with a focus on liquidity.
- Review of the fund's fee structure, including management fees and performance fees.
- Evaluation of any lock-up periods and their implications for investors.
Incident Response Plans
- Evaluation of the fund's plans for ensuring business continuity in the event of disruptions or crises.
- Review of the fund's disaster recovery and incident response plans.
What We Deliver To You
Help visitors get the basic idea within a few seconds, so they understand what this section is about.
A comprehensive report detailing our findings and analysis. This includes an in-depth review of the fund's strategy, performance, technology, team, risk management, regulatory compliance, service providers, fund terms, and incident response plans.
A concise summary of the key findings from our due diligence, providing a quick overview of our assessment of the fund.
A score from 1 to 10, providing a quick reference of our assessment of the fund. The score is based on our analysis of the fund's responses to the questionnaire and our due diligence call.
A brief profile of the fund, highlighting its key characteristics and features. This provides a snapshot of the fund that can be easily shared with others.
Due Diligence Call Recording
A recording of our due diligence call with the fund's management team, providing a transparent record of our conversation.