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    Hedge Fund Operational Due Diligence Master Class

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    Andrew Borowiec
    The IMDDA has put together a rigorous curriculum that upon completion will provide students with the knowledge, skills and abilities to implement robust operational and investment management due diligence. The program is broken down into six days of learning consisting of three class sec6ons. In order to receive a certificate of completion each student must take and pass an exam administered at the conclusion of day six of the program.

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    Hedge Fund Operational Due Diligence Master Class

    Uploaded by

    Andrew Borowiec
    200 views7 pages
    The IMDDA has put together a rigorous curriculum that upon completion will provide students with the knowledge, skills and abilities to implement robust operational and investment management due diligence. The program is broken down into six days of learning consisting of three class sec6ons. In order to receive a certificate of completion each student must take and pass an exam administered at the conclusion of day six of the program.

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    The IMDDA has put together a rigorous curriculum that upon completion will provide students with the knowledge, skills and abilities to implement robust operational and investment management due diligence. The program is broken down into six days of learning consisting of three class sec6ons. In order to receive a certificate of completion each student must take and pass an exam administered at the conclusion of day six of the program.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    200 views7 pages

    Hedge Fund Operational Due Diligence Master Class

    Uploaded by

    Andrew Borowiec
    The IMDDA has put together a rigorous curriculum that upon completion will provide students with the knowledge, skills and abilities to implement robust operational and investment management due diligence. The program is broken down into six days of learning consisting of three class sec6ons. In order to receive a certificate of completion each student must take and pass an exam administered at the conclusion of day six of the program.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    of 7

    IMDDA Certificate in

    Hedge Fund Operational Due Diligence

    Masters Level Certificate

    This Cer6cate is comprised of mul6ple courses; you can choose to take the full
    Cer6cate or just the courses relevant to your career.
    The IMDDA has put together a rigorous curriculum that upon comple6on will provide students
    with the knowledge, skills and abili6es to implement robust opera6onal and investment
    management due diligence. The program is broken down into six days of learning consis6ng of
    three class sec6ons. In order to receive a cer6cate of comple6on each student must take and
    pass an exam administered at the conclusion of day six of the program.

    Class 1 Preparing for an Opera2onal Due Diligence Onsite Mee2ng (2 Days)
    Class One begins with lectures and hands on review of fund documents and materials. The students will
    work in groups to dissect and evaluate oering documents, regulatory lings and marke6ng material in
    addi6on to reviewing due diligence ques6onnaires and fund management informa6on in order to be
    properly prepared to conduct an onsite due diligence mee6ng.

    Class 2 Conduc2ng the Onsite Opera2onal Due Diligence Mee2ng (2 Days)
    Class Two begins with a review of the prior material and prepara6on for onsite due diligence mee6ngs.
    Once the review is complete, students will experience an onsite due diligence mee6ng through a unique
    partnership created by the IMDDA and investment managers. This hands-on learning exercise will allow
    students to ask ques6ons, gather informa6on and experience due diligence in ac6on by learning about
    risk, infrastructure, investment style and strategy and management controls.

    Class 3 Technology, Risk Assessment and Crea2ng a Superior Opera2onal Due Diligence Ongoing
    Process and Exams (2 Days)
    Class three begins with a review of the prior material. Upon comple6on, students will focus on whats
    next in the due diligence process. This part of the program provides students with the tools needed to
    con6nue to monitor investment managers, understand the role of technology in both investment
    management and opera6ons as well as how to make sure informa6on gathered prior is s6ll relevant,
    per6nent and truthful.

    In order to earn a Cer6cate you must complete all classes and pass the exam.

    ________________________________________________________
    Masters Level

    IMDDA Certificate in
    Hedge Fund and Hedge Fund of
    Fund Operational Due Diligence

    This Masters Level program focuses on the skills and knowledge that the investor needs
    to
    Who should aJend?

    Investment professionals from asset managers,


    such as pension funds, endowments, family
    oces, insurance companies, sovereign wealth
    funds, investment and development banks
    Hedge fund professionals interested in gaining a
    thorough understanding of the ins6tu6onal
    investors perspec6ve
    Policy makers and government ocials who are
    responsible for regula6ng the nancial sector

    Advisors working with hedge fund clients,


    including accountants, lawyers, bankers,
    consultants and nancial advisors

    What will your organiza2on gain?


    An overall understanding of how to expertly
    evaluate investment opportuni6es in hedge funds
    Enhanced technical exper6se and research insights
    Par6cipants will be able to apply their knowledge
    immediately in their day-to-day business
    Compe66ve advantages due to rst hand insights
    and knowledge of trainers and guest-speakers
    High-level networking to enable par6cipants to add
    value to their organiza6ons decision making

    Prerequisite knowledge:
    A deep and thorough background in the nancial
    markets and securi6es
    A complete understanding of nancial products
    including; hedge funds, private equity and
    separate account plaSorms
    Strong knowledge and experience working with
    nancial statements
    Knowledge and understanding of investment
    strategies

    What will you learn?
    Development of sound opera6onal due diligence
    policies and procedures
    The ability to evaluate all aspects of an
    investment managers opera6ons and
    infrastructure
    Understanding fund structures and domiciles
    Reading and understanding fund documents and
    nancial statements
    How to evaluate compliance procedures at an
    investment manager
    Implemen6ng a blueprint for opera6onal due
    diligence policies and procedures.
    Ongoing monitoring of fund managers
    Understand porSolio manager valua6on
    prac6ces

    ________________________________________________________
    Masters Level

    IMDDA Certificate in
    Hedge Fund and Hedge Fund of
    Fund Operational Due Diligence

    Class 1 - Preparing for an initial


    Hedge Fund Operational Due
    Diligence onsite meeting (Day 1)
    Module 1 Documents to be collected and reviewed
    prior to an Onsite Mee2ng
    A Deep Dive into a funds PPM and IMA
    Review and Verica6on of all Mems & Arts
    documenta6on
    Understanding the Pros and Cons of the Funds
    Structure
    Digging into background checks and cri6cal
    employee aZri6on
    Compiling the list of ini6al Follow up and Flagged
    items
    Case Studies

    Module 2 Breaking down a funds DDQ
    Disassembling a funds DDQ responses
    What did the Fund fail to include in their DDQ?
    Are the funds service providers consistent with
    their Strategy?
    What do the funds counterpar6es tell us about the
    funds opera6ons?
    Triangula6ng between DDQ and addi6onal
    documenta6on (PPM, Marke6ng Materials,
    Opera6ons Manual, Compliance Policies etc.)
    Conduc6ng LP reference checks and verica6ons

    Class 1 - Preparing for an initial


    Hedge Fund Operational Due
    Diligence onsite meeting (Day 2)
    Recap Day One Q&A session

    Module 3 Review and Verica2on of Compliance and
    Regulatory MaJers
    A review of various tools available for compliance
    reviews
    Form ADV Part 1A, Part 2A and 2B Iden6fying Red
    Flags and non-disclosed maZers
    Cri6cal target areas to assess an RIAs regulatory and
    compliance program
    Conduc6ng a Background Search (Registered en66es,
    poli6cal contribu6ons, registered reps)
    Foreign Regulatory search tools
    Case Studies

    Module 4 Audited Financials Review and Verica2on
    Breaking down a funds audited nancial statements
    Consistency on Expenses between the AFS, the PPM,
    and the IMA
    Comparing the AFS to Administrators Transparency
    Reports
    ASC 820, leveling and valua6on overview
    Red Flags
    Case Studies

    Flagged items for review


    Case Studies

    ________________________________________________________
    Masters Level

    IMDDA Certificate in
    Hedge Fund and Hedge Fund of
    Fund Operational Due Diligence

    Class 2 - Conducting the onsite


    Hedge Fund Operational Due
    Diligence meeting (Day 1)
    Module 1 Preparing for the Onsite Mee2ng a quick
    review
    This module is a fast paced review of the IMDDAs Master
    Class [1] Preparing for the Onsite ODD Mee6ng. The
    module will be comprehensive in nature and a brief
    refresher course.

    Module 2 The art of the on-site interview workshop
    On site agenda
    Interview Guide - What to ask, when to ask and how
    to ask
    Data Triangula6on Looking for dierent answers to
    the same ques6ons
    Lie Spoing
    Body Language

    Module 3 - Evalua2ng Performance and Risk
    Strategy benchmarking and analysis
    Interac6ve case studies

    Module 4 Investor Rela2ons: Understanding the Fund
    Terms
    Key items to be learned from the rms sales team.
    Keeping in mind that the IR/Business Development
    team are typically sales people looking to please
    investors, and prospec6ve investors, there is oken
    much ODD can learn about the en6re rm from the
    rst interview.
    The Funds metrics, AUM, history and culture
    Fund Seeding, Accelera6on, Funds of One, Managed
    Accounts
    Internal Capital, Ownership
    Red Flags

    Module 5 The COO: Infrastructure and Controls
    Evalua6ng fund manager infrastructure and
    governance
    Internal Controls and Procedures
    Counterpar6es and Service Providers
    E&O/D&O Insurance and Indemnica6on

    Class 2 - Conducting the onsite


    Hedge Fund Operational Due
    Diligence meeting (Day 2)
    Recap Day One Q&A session

    Module 6 The CCO: Verifying the Culture of Compliance
    Compliance and regulatory reviews
    Service Provider verica6on and challenges
    Understanding an SEC Deciency LeZer
    Compliance and Cyber Technology


    Module 7A The CFO/Controller: Collateral Management
    Fund counterpar6es are they a good t for the
    strategy?
    The use of regional custodians and unintended risks
    How does the fund monitor its collateral?
    Cash, Collateral, and Counterparty Management


    Module 7B The CFO/Controller: Cash Controls and
    Valua2on
    Cash Controls, systems,
    Fraud, thek, and malfeasance
    Case Studies


    Module 8 Poraolio Valua2on
    Securi6es Valua6on
    A review of various PPMs and the valua6on language
    The use of third party valua6on agents

    ________________________________________________________
    Masters Level

    IMDDA Certificate in
    Hedge Fund and Hedge Fund of
    Fund Operational Due Diligence

    Class 3 - Technology, Risk


    assessment and Creating a Superior
    Operational Due Diligence Ongoing
    process and exams (Day 1)
    Module 1 Preparing and Conduc2ng an Onsite ODD
    Mee2ng a quick review
    This module is a fast paced review of the IMDDAs
    Master Class [1] and Class [2] Preparing for and
    Conduc6ng the Onsite ODD Mee6ng. The module will
    be comprehensive in nature and a brief refresher
    course.

    Module 2A The CTO: A deep understanding of IT/
    BCP
    Internal Data Centers vs Remote Data Centers
    Cloud Based and Hosted solu6ons
    BCP Can the manager actually manage the
    porSolio in an emergency?
    Cybersecurity, tes6ng, and planning for being
    hacked
    Case Studies

    Module 2B The CTO: A deep understanding of IT/
    BCP
    Cybersecurity, tes6ng, and planning for being
    hacked.
    Cybersecurity experts weigh in on industry risks

    Module 3 An overview of common HF systems
    Industry experts discuss and explain the strengths and
    weaknesses of the most widely systems in the
    marketplace. Know if the service provider your
    manager is using is the best match for the strategy
    your manager is employing.
    Pros and Cons of specic vendors
    Proper workarounds for deciencies
    OMS and PMS systems
    Middle oce and matching systems
    Back oce and accoun6ng systems

    Class 3 - Technology, Risk assessment


    and Creating a Superior Operational
    Due Diligence Ongoing process and
    exams (Day 2)
    Recap Day One Q&A session

    Module 4 Ongoing ODD Monitoring Challenges
    Crea6ng a database to track changes and trends
    How do you respond to a fund manager having a
    regulatory examina6on
    What if your manager is ned by a regulator
    Ongoing monitoring of a funds Audited Financial
    Statements
    Tracking Administrators Transparency Reports

    Module 5 Ongoing ODD Monitoring Challenges
    This module is a fast paced review of the three IMDDAs
    Master Classes. This module will be comprehensive in
    nature and a brief refresher course.

    Module 6 Exam 1

    Module 7 Exam 2

    ________________________________________________________
    Masters Level

    IMDDA Certificate in
    Hedge Fund and Hedge Fund of
    Fund Operational Due Diligence

    PROGRAM SCHEDULE

    HOW TO REGISTER
    Go online at www.imdda.org/training

    If you would like to discuss any aspect of the program
    please contact Andrew Borowiec on +1.212.658.0423 or email andrew@imdda.org

    Visit our website at www.imdda.org

    DISCLAIMER
    The course is designed to provide accurate and
    authorita6ve informa6on in regard to current best
    prac6ces in the due diligence industry. It is conducted in
    the understanding that the IMDDA is not engaged in
    rendering professional services. If professional advice or
    other expert assistance is required, the services of a
    competent professional should be sought. IMDDA reserves
    the right to amend the program and speakers may change
    due to circumstances beyond IMDDAs control.

    Class 1 November 2 - 3, 2016


    IMDDA members - USD 1,995
    Non-Members USD 2,195*

    Class 2 January 11 12, 2017
    IMDDA members - USD 1,995
    Non-Members USD 2,195*

    Class 3 March 21 22, 2017
    IMDDA members - USD 1,495
    Non-Members USD 1,695*

    Classes can be purchased as a package for:
    IMDDA members USD 4,995
    Non-Members USD 5,495**

    TRAVEL AND ACCOMMODATION
    Travel and accommoda6on is not included in the
    program fee.
    *Includes a one year membership to the IMDDA
    **Includes a two year membership to the IMDDA

    ________________________________________________________
    Masters Level

    IMDDA Certificate in
    Hedge Fund and Hedge Fund of
    Fund Operational Due Diligence

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