When checking out a money manager remember to ensure the identity of the custodian. Above all, ask questions about:

1. Background of the firm
   Overview of strategy, investment process, and market opportunity; management company details
2. The "Delta" - What has changed within the past year?
   People, philosophy, process, plans, leverage, performance, AuM, service providers
3. Redemptions
   Most recent figures and changes to policies, if applicable
4. Liquidity profile
5. Risk Reporting and processes
   Portfolio transparency and concentration / stratification, and risk guidelines
6. Operations - broken down as below, as applicable:
   Trading – discuss lifecycle of trade and trading platforms / reconciliation
   Pricing and valuation
   Custody arrangements
   Best Execution
   Sec Lending
   Swap and Counterparty management
   Business Continuity
7. List of Service Providers:
   Auditor
   Administrator
   Custodian
   List of Brokers
   Legal
   Any external consultants (identify what role the consultant plays)
   Other
8. Discussion of counterparties and process for managing
9. Discussion of compliance policies
   Code of ethics, insider trading, personal trading, conflict of interest
10. Regulatory registrations
    Check for registrations and ensure that there are no disclosures or regulatory findings
11. Full background checks
    The firm and key principals in the firm, along with the PM of the fund, including verification of: education, employment, litigation, media, police records, any regulatory findings
12. Any other risk issues/concerns from the other teams
    (investment, ops, legal) not covered in the above
13. Infrastructure

Investment Fraud - Bobby's View