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Castle Hall Releases White Paper on Hedge Fund Investing in a New World


Date: Tuesday, November 4, 2008
Author: Market Watch.com

Hedge Fund Operational Due Diligence: Castle Hall Releases White Paper on Hedge Fund Investing in a New World.

MONTREAL, Nov 03, 2008 (BUSINESS WIRE) -- Castle Hall Alternatives, a leading provider of hedge fund operational due diligence, today published "Hedge Fund Investing in a New World: Five Questions for Investors and Managers."
Chris Addy, Castle Hall's President and CEO, said "the credit crisis and market events over the past year have challenged the hedge fund industry as never before. Alternative investments will remain integral to diversified, institutional portfolios, but there will unavoidably be a re-evaluation of the hedge fund model."
Castle Hall's focus on hedge fund operational risk has helped the firm identify five questions relevant to both investors and managers in this "New World". The firm's White Paper asks whether the typical "2 and 20" fee structure is fundamentally flawed; whether hedge funds need better corporate governance; and whether there is an "expectations gap" in the fund administration industry. The White Paper also questions whether the fund prospectus should be written to protect the manager or the investor and asks if it is possible to hold illiquid assets in an open ended vehicle.
"The structures and conventions accepted in the past may not be the best for the hedge fund industry going forward" said Addy. "We have highlighted a number of areas where current practices are weak and, in the New World, we expect investors to be more vocal and require greater protection and control when allocating to hedge funds. Investors will also focus more intently on operational, structural and business issues in addition to performance and strategy."
Hedge Fund Investing in a New World, the first in a series of thought leadership papers to be published by Castle Hall, can be accessed at http://www.castlehallalternatives.com/publications.php
About Castle Hall Alternatives
Castle Hall Alternatives helps leading investors identify better hedge fund managers - firms which not only have attractive performance but also match operational best practices. Castle Hall's experienced team of due diligence professionals use a proprietary methodology to prepare a detailed operational assessment for each fund under review. As an independent company, each Castle Hall due diligence report is wholly objective and unconflicted. More information is available at www.castlehallalternatives.com. Investors may also access "Risk Without Reward", Castle Hall's blog on operational risk issues, at http://castlehall.typepad.com.
SOURCE: Castle Hall Alternatives
Castle Hall Alternatives 
Chris Addy, +1 450 465 8880 
President and CEO 
chris.addy@castlehall.ca