Insights and perspectives from our advisory practice, featuring content shared across professional platforms and industry discussions

June 2025

The Trust Deficit That's Costing Hedge Funds Billions

Every headline about fraudulent fund managers doesn't just damage one firm—it erodes investor confidence across our entire industry. While you're focused on generating alpha, your potential investors are increasingly asking harder questions about operational risk.


The funds thriving in today's environment aren't just the ones with the best returns—they're the ones that can demonstrate bulletproof operational integrity from day one.


Smart hedge fund leaders are getting ahead of this by:


  • Establishing robust operational infrastructure that scales with growth and meets institutional standards
  • Building an institutional-grade governance framework before you need it
  • Implementing robust compliance systems that investors recognize and trust
  • Creating transparency protocols that differentiate them from competitors cutting corners


The cost of reactive compliance far exceeds the investment in getting it right upfront. More importantly, operational excellence has become a competitive advantage in investor selection.


Your investment strategy gets you to the table. Your operational infrastructure determines whether you get the allocation.


At Thalia Advisory, we partner with hedge fund leaders to transform governance from cost center to competitive advantage—because what protects you powers you.

Additional insights will be published regularly.