CAIA LEVEL 2 - Sept 2018 : Action resulting from monitoring PA

CAIA
#1

HI,

talking about contradictions:

the CAIA Official book says on pag. 251: “it is also not money well spent to focus scarce monitoring resources on teams that are highly professional or on funds over which other experienced LPs exercise significant oversight”.

Kaplan states the exact opposite on pag.365: " Also, for funds run by top-tier teams or for funds with many other experienced LPs exercising oversight over the fund, it does not make sense to devote a lot of time and resources to monitoring".

Common sense agrees with Kaplan statement however my work experience as an ODD specialist teaches me that you can never tell! we are just right now dealing with a case of a fund fraud where operational procedures were breached despite it was a very well established GP with great reputation internationally!.

any considerations?

#2

I know what you are referring to. I think the text is trying to draw some general conclusion on the level of monitoring that is needed for certain fund’s condition. In their eyes, well establised team ==> less montoring.

Thinking back my CFA days, there is the industry way, there is the correct way, and there is the CFA way!