IMDDA Certificate in

Hedge Fund Operational Due Diligence

Masters Level Certificate

This Cer6cate is comprised of mul6ple courses; you can choose to take the full
Cer6cate or just the courses relevant to your career.
The IMDDA has put together a rigorous curriculum that upon comple6on will provide students
with the knowledge, skills and abili6es to implement robust opera6onal and investment
management due diligence. The program is broken down into six days of learning consis6ng of
three class sec6ons. In order to receive a cer6cate of comple6on each student must take and
pass an exam administered at the conclusion of day six of the program.

Class 1 Preparing for an Opera2onal Due Diligence Onsite Mee2ng (2 Days)
Class One begins with lectures and hands on review of fund documents and materials. The students will
work in groups to dissect and evaluate oering documents, regulatory lings and marke6ng material in
addi6on to reviewing due diligence ques6onnaires and fund management informa6on in order to be
properly prepared to conduct an onsite due diligence mee6ng.

Class 2 Conduc2ng the Onsite Opera2onal Due Diligence Mee2ng (2 Days)
Class Two begins with a review of the prior material and prepara6on for onsite due diligence mee6ngs.
Once the review is complete, students will experience an onsite due diligence mee6ng through a unique
partnership created by the IMDDA and investment managers. This hands-on learning exercise will allow
students to ask ques6ons, gather informa6on and experience due diligence in ac6on by learning about
risk, infrastructure, investment style and strategy and management controls.

Class 3 Technology, Risk Assessment and Crea2ng a Superior Opera2onal Due Diligence Ongoing
Process and Exams (2 Days)
Class three begins with a review of the prior material. Upon comple6on, students will focus on whats
next in the due diligence process. This part of the program provides students with the tools needed to
con6nue to monitor investment managers, understand the role of technology in both investment
management and opera6ons as well as how to make sure informa6on gathered prior is s6ll relevant,
per6nent and truthful.

In order to earn a Cer6cate you must complete all classes and pass the exam.

________________________________________________________
Masters Level

IMDDA Certificate in
Hedge Fund and Hedge Fund of
Fund Operational Due Diligence

This Masters Level program focuses on the skills and knowledge that the investor needs
to
Who should aJend?

Investment professionals from asset managers,

such as pension funds, endowments, family
oces, insurance companies, sovereign wealth
funds, investment and development banks
Hedge fund professionals interested in gaining a
thorough understanding of the ins6tu6onal
investors perspec6ve
Policy makers and government ocials who are
responsible for regula6ng the nancial sector

Advisors working with hedge fund clients,

including accountants, lawyers, bankers,
consultants and nancial advisors

What will your organiza2on gain?

An overall understanding of how to expertly
evaluate investment opportuni6es in hedge funds
Enhanced technical exper6se and research insights
Par6cipants will be able to apply their knowledge
immediately in their day-to-day business
Compe66ve advantages due to rst hand insights
and knowledge of trainers and guest-speakers
High-level networking to enable par6cipants to add
value to their organiza6ons decision making

Prerequisite knowledge:
A deep and thorough background in the nancial
markets and securi6es
A complete understanding of nancial products
including; hedge funds, private equity and
separate account plaSorms
Strong knowledge and experience working with
nancial statements
Knowledge and understanding of investment
strategies

What will you learn?
Development of sound opera6onal due diligence
policies and procedures
The ability to evaluate all aspects of an
investment managers opera6ons and
infrastructure
Understanding fund structures and domiciles
Reading and understanding fund documents and
nancial statements
How to evaluate compliance procedures at an
investment manager
Implemen6ng a blueprint for opera6onal due
diligence policies and procedures.
Ongoing monitoring of fund managers
Understand porSolio manager valua6on
prac6ces

________________________________________________________
Masters Level

IMDDA Certificate in
Hedge Fund and Hedge Fund of
Fund Operational Due Diligence

Class 1 - Preparing for an initial

Hedge Fund Operational Due
Diligence onsite meeting (Day 1)
Module 1 Documents to be collected and reviewed
prior to an Onsite Mee2ng
A Deep Dive into a funds PPM and IMA
Review and Verica6on of all Mems & Arts
documenta6on
Understanding the Pros and Cons of the Funds
Structure
Digging into background checks and cri6cal
employee aZri6on
Compiling the list of ini6al Follow up and Flagged
items
Case Studies

Module 2 Breaking down a funds DDQ
Disassembling a funds DDQ responses
What did the Fund fail to include in their DDQ?
Are the funds service providers consistent with
their Strategy?
What do the funds counterpar6es tell us about the
funds opera6ons?
Triangula6ng between DDQ and addi6onal
documenta6on (PPM, Marke6ng Materials,
Opera6ons Manual, Compliance Policies etc.)
Conduc6ng LP reference checks and verica6ons

Class 1 - Preparing for an initial

Hedge Fund Operational Due
Diligence onsite meeting (Day 2)
Recap Day One Q&A session

Module 3 Review and Verica2on of Compliance and
Regulatory MaJers
A review of various tools available for compliance
reviews
Form ADV Part 1A, Part 2A and 2B Iden6fying Red
Flags and non-disclosed maZers
Cri6cal target areas to assess an RIAs regulatory and
compliance program
Conduc6ng a Background Search (Registered en66es,
poli6cal contribu6ons, registered reps)
Foreign Regulatory search tools
Case Studies

Module 4 Audited Financials Review and Verica2on
Breaking down a funds audited nancial statements
Consistency on Expenses between the AFS, the PPM,
and the IMA
Comparing the AFS to Administrators Transparency
Reports
ASC 820, leveling and valua6on overview
Red Flags
Case Studies

Flagged items for review

Case Studies

________________________________________________________
Masters Level

IMDDA Certificate in
Hedge Fund and Hedge Fund of
Fund Operational Due Diligence

Class 2 - Conducting the onsite

Hedge Fund Operational Due
Diligence meeting (Day 1)
Module 1 Preparing for the Onsite Mee2ng a quick
review
This module is a fast paced review of the IMDDAs Master
Class [1] Preparing for the Onsite ODD Mee6ng. The
module will be comprehensive in nature and a brief
refresher course.

Module 2 The art of the on-site interview workshop
On site agenda
Interview Guide - What to ask, when to ask and how
to ask
Data Triangula6on Looking for dierent answers to
the same ques6ons
Lie Spoing
Body Language

Module 3 - Evalua2ng Performance and Risk
Strategy benchmarking and analysis
Interac6ve case studies

Module 4 Investor Rela2ons: Understanding the Fund
Terms
Key items to be learned from the rms sales team.
Keeping in mind that the IR/Business Development
team are typically sales people looking to please
investors, and prospec6ve investors, there is oken
much ODD can learn about the en6re rm from the
rst interview.
The Funds metrics, AUM, history and culture
Fund Seeding, Accelera6on, Funds of One, Managed
Accounts
Internal Capital, Ownership
Red Flags

Module 5 The COO: Infrastructure and Controls
Evalua6ng fund manager infrastructure and
governance
Internal Controls and Procedures
Counterpar6es and Service Providers
E&O/D&O Insurance and Indemnica6on

Class 2 - Conducting the onsite

Hedge Fund Operational Due
Diligence meeting (Day 2)
Recap Day One Q&A session

Module 6 The CCO: Verifying the Culture of Compliance
Compliance and regulatory reviews
Service Provider verica6on and challenges
Understanding an SEC Deciency LeZer
Compliance and Cyber Technology


Module 7A The CFO/Controller: Collateral Management
Fund counterpar6es are they a good t for the
strategy?
The use of regional custodians and unintended risks
How does the fund monitor its collateral?
Cash, Collateral, and Counterparty Management


Module 7B The CFO/Controller: Cash Controls and
Valua2on
Cash Controls, systems,
Fraud, thek, and malfeasance
Case Studies


Module 8 Poraolio Valua2on
Securi6es Valua6on
A review of various PPMs and the valua6on language
The use of third party valua6on agents

________________________________________________________
Masters Level

IMDDA Certificate in
Hedge Fund and Hedge Fund of
Fund Operational Due Diligence

Class 3 - Technology, Risk

assessment and Creating a Superior
Operational Due Diligence Ongoing
process and exams (Day 1)
Module 1 Preparing and Conduc2ng an Onsite ODD
Mee2ng a quick review
This module is a fast paced review of the IMDDAs
Master Class [1] and Class [2] Preparing for and
Conduc6ng the Onsite ODD Mee6ng. The module will
be comprehensive in nature and a brief refresher
course.

Module 2A The CTO: A deep understanding of IT/
BCP
Internal Data Centers vs Remote Data Centers
Cloud Based and Hosted solu6ons
BCP Can the manager actually manage the
porSolio in an emergency?
Cybersecurity, tes6ng, and planning for being
hacked
Case Studies

Module 2B The CTO: A deep understanding of IT/
BCP
Cybersecurity, tes6ng, and planning for being
hacked.
Cybersecurity experts weigh in on industry risks

Module 3 An overview of common HF systems
Industry experts discuss and explain the strengths and
weaknesses of the most widely systems in the
marketplace. Know if the service provider your
manager is using is the best match for the strategy
your manager is employing.
Pros and Cons of specic vendors
Proper workarounds for deciencies
OMS and PMS systems
Middle oce and matching systems
Back oce and accoun6ng systems

Class 3 - Technology, Risk assessment

and Creating a Superior Operational
Due Diligence Ongoing process and
exams (Day 2)
Recap Day One Q&A session

Module 4 Ongoing ODD Monitoring Challenges
Crea6ng a database to track changes and trends
How do you respond to a fund manager having a
regulatory examina6on
What if your manager is ned by a regulator
Ongoing monitoring of a funds Audited Financial
Statements
Tracking Administrators Transparency Reports

Module 5 Ongoing ODD Monitoring Challenges
This module is a fast paced review of the three IMDDAs
Master Classes. This module will be comprehensive in
nature and a brief refresher course.

Module 6 Exam 1

Module 7 Exam 2

________________________________________________________
Masters Level

IMDDA Certificate in
Hedge Fund and Hedge Fund of
Fund Operational Due Diligence

PROGRAM SCHEDULE

HOW TO REGISTER
Go online at www.imdda.org/training

If you would like to discuss any aspect of the program
please contact Andrew Borowiec on +1.212.658.0423 or email andrew@imdda.org

Visit our website at www.imdda.org

DISCLAIMER
The course is designed to provide accurate and
authorita6ve informa6on in regard to current best
prac6ces in the due diligence industry. It is conducted in
the understanding that the IMDDA is not engaged in
rendering professional services. If professional advice or
other expert assistance is required, the services of a
competent professional should be sought. IMDDA reserves
the right to amend the program and speakers may change
due to circumstances beyond IMDDAs control.

Class 1 November 2 - 3, 2016

IMDDA members - USD 1,995
Non-Members USD 2,195*

Class 2 January 11 12, 2017
IMDDA members - USD 1,995
Non-Members USD 2,195*

Class 3 March 21 22, 2017
IMDDA members - USD 1,495
Non-Members USD 1,695*

Classes can be purchased as a package for:
IMDDA members USD 4,995
Non-Members USD 5,495**

TRAVEL AND ACCOMMODATION
Travel and accommoda6on is not included in the
program fee.
*Includes a one year membership to the IMDDA
**Includes a two year membership to the IMDDA

________________________________________________________
Masters Level

IMDDA Certificate in
Hedge Fund and Hedge Fund of
Fund Operational Due Diligence