Shaping the Future through Rigorous Operational Due Diligence, Comprehensive Risk Management and Compliance
On April 26-29, over 300 Asset Allocators, End-Investors and Asset Managers from across the globe gathered at GAIM Ops Europe to discuss how the rapidly changing economic conditions are shaping operational due diligence.
Speakers and attendees expressed a “get to work” attitude as they discussed the evolution of hedge fund allocation models in terms of new structures, staff, third party relationship and the role regulatory oversight will affect the industry.
INSIGHT Norm McGregor, a partner in the Hedge Fund Practice of Deloitte gave opening remarks, highlighting key events of the past twelve months. Industry veteran, Joel Press kicked off the conference, in the opening keynote joking that he picked the top of the hedge fund market to jump from Ernst & Young to Morgan Stanley in 2007. Despite recent developments, Press remains a “raging optimist” stating that by 2010, we will see a “flurry of hedge fund start-ups” as a result of the recent exodus of staff from traditional Wall Street institutions. He also predicts “significant mergers and roll-ups since egos are worth less than they have recently been” alluding to the recent M&A activity in the hedge fund world.
Virginia Reynolds Parker, of Parker Global Strategies also gave a keynote address where she directly addressed concerns over funds with Madoff, “Most funds of funds invested in Madoff had made exceptions to their own rules.”
Speakers of the afternoon sessions discussed changing terms for hedge fund leverage, how to mitigate liquidity risk, and best methods to manage cash in the down cycle. Panels also addressed key questions to ask on at the onsite due diligence visit and methods for achieving operational alpha.
Particularly topical was the series of sessions dedicated to case studies in risk management, where speakers identified due diligence practices for the distressed debt market opportunities, how to deal with redemption rights and how to structure ISDA agreements.
NEW IDEAS From the central themes of the second day of GAIM Ops Cayman “Fees, Valuations, and Liquidity”, several ideas on new structures emerged. Not only did speakers discuss new methodologies for valuing Hard to price investment structures, the creation of SPVs and separately managed account platform, but also they discussed the possibility of new fee structures that would be better suited at aligning liquidity terms to underlying assets.
CONNECT Attendees enjoyed ample opportunities to connect with peers, investors and industry experts during our hosted lunch and C-Level lunches, round table discussions, extended networking breaks and receptions. As one attendee put it, this year the caliber of the group was so high, they noted that people really sent their “A-Teams” to the forum. Many noticed the change in the seniority of the audience and the higher level of conversations that took place as a result.
Hear what Alpha Hedge had to say about the event
"Several hundred hedge fund CEOs, COOs and operations personnel met today for day one of GAIM Ops, a three-day conference dedicated to hedge fund operational issues. What follows is a description of several of today’s sessions reported directly from the conference floor of this timely event..."
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