Pelorus Advisors Launches Truly Independent Hedge Fund Risk Management Service To Investors

Date: Monday, February 9, 2009
Author: Hartford Dbusiness

Addressing an overwhelming need by the investor community for independent and unbiased hedge fund risk due diligence, Pelorus Advisors has launched an operational risk management service for hedge fund investors. Unlike other due diligence firms, Pelorus only offers its risk due diligence service to hedge fund investors.

“It’s an enormous conflict of interest for diligence teams to be compensated by the same hedge funds they cover,” said Jeff Rathgeber, co-founder and partner of Pelorus. “The hedge fund community has seen more than enough target-sponsored ‘independent’ report cards. We'll let other risk management firms issue their seals of approval based on manager-supplied data.”

Pelorus is staffed by a team of hedge fund experts that have spent years operating inside complicated hedge fund structures. “It is only from this vantage point that an advisory firm gains the experience needed to identify the true risks that hide within hedge funds,” said Ken McGee, Managing Director of Pelorus’ Hedge Fund Practice Group. “It is exactly this kind of experience that is missing from most hedge fund due diligence firms. In our opinion, this lack of inside experience is what moves most firms away from being Hedge Fund Risk Experts and moves them into the category of Data Regression Analysts.”

“A clear distinction that separates Pelorus Advisors from other firms is that we don’t harvest massive amounts of publicly available data, crunch it, and issue armchair reports to investors,” said Rathgeber. “Nor do we merely rely on data that is supplied by the target hedge funds we audit. Instead, we conduct in-depth, on-site engagements to dig deep into a hedge fund's operations and run through its control structure to ensure that our clients’ investments are properly protected.”

For more information on Pelorus' Risk Management Services visit

About Pelorus Advisors

Pelorus Advisors is a specialized risk advisory firm focused on helping its clients overcome complex risk management challenges. Pelorus’ Hedge Fund Practice Group provides operational due diligence for pension funds, family offices, university endowments, fund of funds and institutional investors looking to identify and address unseen risks associated with their hedge fund holdings and investments. Pelorus’ due diligence service supports investment officers and risk managers in identifying, measuring and managing risks associated with their hedge fund and fund-of-fund portfolios.