Exclusive Report for CAIA Members
In late 2020, CAIA Association conducted an in-depth survey among our active Members that asked them to look past standard risk and return metrics and share their views on the drivers of manager selection. We hope that the survey results, along with additional resources from the CAIA community, will assist you as you engage in due diligence and manager selection.
In this report, Mark S. Rzepczynski, PhD, Founding Partner and CEO, AMPHI Research and Trading and Keith Black, PhD, CFA, CAIA, FDP explain the motivations of our recent survey, analyze the results, and share the most relevant lessons for our Members.
Key Findings:
- Qualitative factors are as important or more important than quantitative factors in alternative manager due diligence.
- When asked specifically about predictability, respondents say that qualitative factors are most powerful.
- Skill assessment for alternative investment managers is considered more difficult than for traditional investment managers and requires greater analysis of the philosophy, culture, and processes of the manager.
- The operational due diligence of manager business risk can dominate or override assessment of investment skill and is critical to the manager selection process.
The Art of Due Diligence: Exploring the Qualitative Aspects of Manager Research
A discussion of the survey results to better understand the qualitative factors of importance to LPs and GPs during the manager research process. Mark Rzepczynski, PhD, Keith Black, PhD, CFA, CAIA, FDP, and Aaron Filbeck, CFA, CAIA, CIPM, FDP discuss the survey results.
Reflections on Non-Qualitative Drivers in Manager Due Diligence
From the results of our survey, we compiled a selection of findings into an eBook to give professionals the perspective of our CAIA Members.
"Reflections on Non-Quantitative Drivers in Manager Due Diligence" shares our key takeaways from Member insights and the findings translated into questions for self-examination to help investors reflect upon and improve the due diligence processes at their firms.
Click here to access a download of your free copy (Members login, non-Members provide brief info)
ADDITIONAL RESOURCES
Getting Started with Due Diligence
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Our Commitment to Better Due Diligence in Alts By CAIA Association
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ILPA Due Diligence Questionnaire (Institutional Limited Partners Association)
- AIMA Due Diligence Questionnaire (Alternative Investment Management Association)
Qualitative Factors Matter
- The Art of Due Diligence: The Story Beyond the Numbers by Keith Black, PhD, CFA, CAIA, FDP and Mark S. Rzepczynski, PhD, Founding Partner and CEO, AMPHI Research and Trading
- Culture Eats Sharpe Ratios for Breakfast
- Culture, Communication, and Common Ground with Stacy Havener, Founder and CEO of Havener Capital Partners and Aaron Filbeck, CFA, CAIA, CIPM, FDP
- The Often-Forgotten Art and Science of Manager Due Diligence
- Outdated Due Diligence: The Enemy of Manager Diversity (Pacific Current Group)
- Demystifying Private Capital Due Diligence with CAIA Seattle and CAIA Minnesota
Manager Selection Considerations
- Operational Due Diligence: Some Good News for Emerging Managers by Keith Black, PhD, CFA, CAIA, FDP and Mark S. Rzepczynski, PhD, Founding Partner and CEO, AMPHI Research and Trading
- Operational Plus Commercial Due Diligence: Strengthen the Shield Against Fraud (PDF, AIAR)
- Due Diligence: Applications and Practice: Panel Discussion
Investment Strategies and Vehicles
- How Venture Capitalists Make Decisions (Harvard Business Review)
- The Evolution of Private Equity Fund Value (JAI)
- Do Private Equity Alternative Vehicles Benefit Some LPs More Than Others?
- Performance Persistence: Is It There, and Can it Be Exploited?
- Co-Investments: A Sprint or a Marathon?
- ESG Asset Owner Survey: How Are Investors Changing? (bfinance)