Hi. What is the general procedure / template you would undertake in analyzing a fund? What are the factors you would generally consider the most pertinent, etc… The fund I have in mind primarily buys into distressed assets. Thanks
This is a hedge fund? Can you talk to the PM? Are you considering a variety of disttressed funds? More info and then I can help.
same as JDV… are you asset consultant/researcher? or just a high net worth individual that want some fun? that said, in general you look at their investment philosophy, process and personel. philosophy as in their core belief - this is how they think they can make money or how they differentiate themselves. process constitutes of how they generates their idea, any metrics or model. This is the hard part because taking equity manager as an example. They will use many different signals, it is then your job to see if those signals make sense? Do they add value? Do they bring alpha? The second part of the process is basically how they execute their idea that includes broker they use, their middle/backoffice and their infrastructure. personnel certainly mean how good their pm/analyst are, team structure, remuneration and bonus structure. Taking a step further, their BDM plays a big role as well. Continuous income stream is always good for business operation. Every single asset class has a different characteristic. If I’m to look at distress debt, two thing I’ll pay attention is firstly, how they evaluate the ‘reviving probability’ of these companies (especially in current credit market dislocation). Second, how they access these instrument without sending wrong signals to the market. Hope it helps.