Discussion Questions and Problems

1. Why are service providers considered so important to a hedge fund manager? Why do they matter do investors?
2. What are some of the important functions provided to a hedge fund by their administrator?
3. Give an example of how a manager, a fund, or an investor would specifically benefit from a relationship with an administrator.
4. What are some of the important functions provided to a hedge fund by their prime broker?
5. Give an example of how a manager, a fund, or an investor would specifically benefit from a relationship with a prime broker.
6. How can investors and fund managers mitigate exposure to a prime broker?
7. What value added services do auditors provide beyond the basic audit report?
8. Give an example of how a manager, a fund, or an investor would specifically benefit from a relationship with an auditor.
9. What are some of the problems associated with choosing a service provider simply based on price?
10. Which service providers do you consider the most important to a start-up hedge fund and why?

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