Amaranth, Aurora, The Manhattan Fund, Bayou. To anyone invested in or interested in investing in hedge funds, these names evoke one thought: blow-ups. Knowing that these and other hedge funds have faltered is not particularly valuable; knowing how to avoid funds that might blow up, on the other hand, is crucial. Hedge Fund Due Diligence provides a step-by-step methodology that will allow you to do just that. Based on a framework that hedge fund investigative expert Randy Shain has refined over the course of his successful career, this book offers an overview of due diligence into hedge fund management, how information on managers can be obtained, and why this information is essential to the investment community. Including deconstructions of recent hedge fund blow-ups, this timely resource will alert you to the warning signs of potential problems and, more importantly, how to avoid them. By analyzing these examples, and explaining how you can develop this kind of research for yourself, Hedge Fund Due Diligence will allow you to make the most informed hedge fund investment decisions possible. And with the tools presented throughout the book, you'll have the knowledge you need to deduce how a hedge fund manager's previous behavior is likely to predict their future success.