Hedge Fund News From HedgeCo.Net

Psychometric Tests and Due Diligence

May 9, 2016 : Permanent Link

(Harvest) The due diligence of hedge funds is often first rate, but the due diligence on manager skill is still mainly focused on only three factors, past performance, pedigree, and references. Given the tight performance across managers, the wide range of manager experiences, and the limited information from references, investors are still looking for better ways of measuring the skills of portfolio managers. The question is determining how to get inside the head of managers and find out if they have what it takes – skill.

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