Table of Contents
What is a hedge fund DDQ?
The Responsible investment due diligence questionnaire (DDQ) for hedge funds helps identify those hedge funds that have the personnel, knowledge, and structure to incorporate environmental, social and governance (ESG) factors in the investment decision-making process.
What is an AIMA DDQ?
For more than 20 years, AIMA has been providing guidance and standardisation for its members around the world in the form of Due Diligence Questionnaires (DDQs). It was a response to requests from investors for a standardised set of questions. Since then, the DDQs have gone on to become the industry-standard template.
What is hedge fund notice period?
The length of time (typically 30–90 days) in advance that investors may be required to notify a fund of their intent to redeem some or all of their investment.
What Are due diligence Questions?
50+ Commonly Asked Questions During Due Diligence
- Company information. Who owns the company?
- Finances. Where are the company’s quarterly and annual financial statements from the past several years?
- Products and services.
- Customers.
- Technology assets.
- IP assets.
- Physical assets.
- Legal issues.
What is ppm in hedge fund?
As a private investment partnership, hedge funds are not permitted to have an unlimited amount of investors and therefore the offering (typically conducted via a PPM for a private placement or a private placement memorandum or offering memorandum for the hedge fund) will limit the number of investors.
What is DD questionnaire?
A due diligence questionnaire, referred to by the acronym DDQ, is a list of questions designed to evaluate aspects of an organization prior to a merger, acquisition, investment or partnership. Sometimes, the due diligence questionnaire is called the due diligence checklist.
What should be included in a hedge fund DDQ?
What many investors fail to realize is that DDQ’s, just like pitchbooks, are marketing documents. A competent hedge fund manager will most likely attempt to present the information in the DDQ in the most positive light possible. In an attempt to legitimize their DDQ’s many hedge funds will utilize a standard question format.
What do you get from a hedge fund due diligence?
One of the most common documents investors will likely receive when performing due diligence on a hedge fund is the due diligence questionnaire (“DDQ”). DDQ’s are essentially the highlights of the firm’s most frequently asked questions – or that is to say the ones the hedge fund wants to answer.
When to use the DDQ due diligence questionnaire?
The opportunity for the give-and-take of an in-depth operational due diligence process is often lost when due diligence is conducted primarily via DDQ’s or RFP’s Hedge Fund Operational Due Diligence Questionnaire – To Use or Not To Use?
What kind of questionnaire do hedge funds use?
A popular one in the hedge fund industry is one prepared by the Alternative Investment Management Association (“AIMA”) . In many cases a hedge fund manager will utilize the AIMA format even if the answer to several questions ostensibly is not applicable, as determined by the manager.