Due diligence focuses on the consequence and its development: the Sharpe ratio, the drawdown, how the universe was outlined, and the way danger is managed. These questions interrogate the configuration the supervisor selected. They not often interrogate the configurations the supervisor didn’t select, which is the place fragility lives.
Normal robustness checks, the place they exist, are often carried out and reported by the supervisor on the supervisor’s personal phrases. The technique is proven to outlive a handful of wise perturbations. It doesn’t, nevertheless, inform the allocator how the technique behaves throughout a spread of cheap alternate options one other staff would have made, or which single part the entire consequence rests on.
