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Investor Reporting and Due Diligence

Under development

This lesson is part of the course scaffold and is being actively written. The learning objectives and outline below define its final scope.

Learning objectives

By the end of this lesson you will be able to:

  • Produce a monthly investor report — performance, exposures, risk, and commentary — at a cadence and level of detail allocators expect
  • Present a track record in a GIPS-aware manner, including composite construction, net-of-fees returns, and disclosure of any backfilled or simulated periods
  • Complete an operational due diligence questionnaire and identify the red flags allocators screen for in each section
  • Audit a track-record presentation for the common sins — cherry-picked windows, gross-for-net, survivorship in composites — and correct them

Outline

  1. Reporting cadence and channels — flash estimates, monthly letters, annual reviews
  2. Report contents — performance, exposures, risk metrics, and honest commentary
  3. Track-record presentation — GIPS awareness, composites, net versus gross
  4. Common track-record sins — cherry-picking, backfill, simulated results presented as live
  5. The operational due diligence questionnaire — structure and how to answer it
  6. What allocators actually check — service providers, references, terms, key-person risk
  7. Building allocator trust — transparency policy and handling bad months

Prerequisites