Fagan: Multi-strat diligence must prioritize risk culture and counterparties over returns
Dan Fagan · Hedge Fund Master Class – Craig Bergstrom, Adam Blitz, and Dan Fagan (Capital Allocators, EP.318) · May 29, 2023 · at 25:57
Institutional allocator Dan Fagan explains how allocators should evaluate large, multi-strategy hedge fund platforms.
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“Most investing, you start by thinking about what the opportunity of the investment is. In this case, I think you want to start it with the risk culture framework and setup of the business model itself. So what does that mean in practice? If you're dealing with a large fund that has a footprint in fixed income relative value and systematic equities and a bunch of other stuff, Don't start by going, well, what do you think about the opportunity in fixed income RV? Start by saying, what are your counterparty relationships like?”
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