[Verse 1] When you're looking for a hedge fund star Check their track record, how they've come so far Performance data spanning years, not just a few Net returns after fees, that's the view that's true Look for consistency through market highs and lows Risk-adjusted returns, that's how wisdom grows [Chorus] Due diligence, check it twice Track record, fees, and price Operations tight, no red flags bright Style drift watch, keep it in sight D-D-C, that's your key Due Diligence Carefully [Verse 2] Operations matter more than you might think One weak link and your investment could sink Check their custody, how they hold your cash Valuation methods, nothing done too brash Independent auditors, board oversight too Proper documentation in everything they do [Chorus] Due diligence, check it twice Track record, fees, and price Operations tight, no red flags bright Style drift watch, keep it in sight D-D-C, that's your key Due Diligence Carefully [Bridge] Style drift creeps in when managers stray From their stated strategy day by day What they promised and what they do Must align or you'll be through Monitor positions, watch the correlation Style consistency across the nation [Verse 3] Background checks on every team member Their experience you must remember Regulatory issues, any legal fights These are crucial warning lights Transparency in reporting every quarter Information flowing like it oughta [Chorus] Due diligence, check it twice Track record, fees, and price Operations tight, no red flags bright Style drift watch, keep it in sight D-D-C, that's your key Due Diligence Carefully [Outro] Before you invest, before you commit Do your homework, every single bit Hedge fund selection takes careful thought Without due diligence, success cannot be bought
← Measuring Hedge Fund Performance | Hedge Fund Index Biases →