Caliburn Capital Partners, the manager of specialist fund of hedge fund portfolios for institutional investors, today announced that it has produced a report on internal controls under the AAF 01/06 standard.

Jeremy Rowlands, Chief Executive Officer, commented: “From Caliburn Capital’s inception in 2005 our goal has been to combine the Managing Partners’ long history of entrepreneurial success and direct hedge fund management experience with a well-resourced, institutional platform. To that end we were interested to proactively demonstrate our commitment to operational excellence. Many institutional investors, particularly pension funds, are increasingly interested in harnessing the diversification and return enhancement potential of hedge funds. At the same time, the fiduciary and governance requirements of these investors dictate a strong focus on managers’ processes and control environments. One of Caliburn Capital’s core values since launch has been a belief in transparency and we are pleased to reaffirm our dedication to the operational transparency that institutional investors require.”

The AAF 01/06 is a standard for assurance reports on internal controls of service organisations made available to third parties and is issued by the Institute of Chartered Accountants in England & Wales. Caliburn Capital's report describes the controls in place as at 31 May 2010. It covers all aspects of the investment management process relevant to investors from setting and monitoring strategy through fund selection, authorising and processing transactions and maintaining complete and accurate records. The report also includes the IT controls which underpin the processes. Caliburn Capital appointed PricewaterhouseCoopers to carry out the review as reporting accountants based on their extensive experience in this field and their market-leading controls reporting practice.

Graham Rodford, Caliburn Capital’s Chief Operating Officer, added: “Prior to joining Caliburn Capital in 2005 my experience was in the accounting / control area of a single hedge fund manager. This was a helpful background to bring to a fund of hedge funds manager and it was a significant help in developing our operational due diligence process. Additionally, the time our operational due diligence team spent reviewing hundreds of underlying hedge funds also informed our views on best practice in hedge fund operations. We felt it was only prudent to apply on an ongoing basis the same stringent review to our own procedures. We were proud of the market-leading infrastructure we had built and on which we had received good feedback from clients and consultants. However, as a further validation of operational excellence, we wanted a rigorous external review of our procedures and operational environment.

We believe we are one of the very first fund of hedge fund managers to successfully undergo the AAF 01/06 examination.”