In a December 13 article entitled " Investors go for independent checks on fund managers" the Financial Times reports on the importance of Hedge Fund Operational Due Diligence and the need for independence throughout the due diligence process.

Quoted in the article, Chris Addy, Castle Hall's CEO, comments on investor's changing attitudes towards due diligence in the year following Madoff, noting that "what was once optional and inconsistent is now mandatory".  Chris also discusses a number of current operational issues, notably the trend for "prospectus creep" and the potential for a "lack of independence in independent pricing".

The full article can be accessed at:

http://www.ft.com/cms/s/0/3987e37a-e688-11de-98b1-00144feab49a.html?nclick_check=1