Sample Projects: Investment Intelligence

Negative patterns in business dealings discovered in hedge fund that collapses eight months later with $400 million-plus loss: SIG client avoids investment commitment.

Principals of investment fund found to be defendants in international litigation involving suspected multi-million dollar fraud.

Senior executive claims he was a U-2 pilot and an Olympian: SIG discovers he was neither.

Future market for a pipeline sealant product is significantly overstated, disregarding new technology that could render company’s product obsolete.

Company is discovered about to enter the market with a lower price product than that of the client’s target for investment.

Principal of company targeted for VC investment is discovered to have over $300,000 in federal tax liens, previously undisclosed to the investor.

Key potential executive is discovered to have history arranging for Russian prostitutes to leave the country and other questionable dealings.

Fund principal is found to have been owner or executive of multiple companies involved in bankruptcies over the previous two decades.

Company is found to have an undisclosed, formerly-associated entity in another country, which may have rights to key intellectual property.

CEO suddenly changes spending habits: accumulating large credit-card debt, and making minimum monthly payments: indicating emergence of personal cash flow problems.

For a large fund of hedge funds with several billion dollars invested in dozens of funds, SIG creates a comprehensive, ongoing background intelligence system that continually assesses fund managers and their key individuals from the standpoint of dozens of indicators, including litigation, SEC filings, regulatory violations, criminal records, financial situation, media/news citations and multiple other elements.  An in-depth check is made at the time a fund is invested, and regular re-checks of key indicators are made on a scheduled basis—some quarterly, and some monthly.