Institutional capital is allocated to control environments, not pitch decks. Operational due diligence has become the decisive gate in manager selection, and the managers who pass it treat governance as infrastructure: a functioning board with independent directors, a valuation policy that survives scrutiny, documented controls, and honest answers to the questions every DDQ now asks. This hub collects CV5 Capital's guidance on governance and ODD readiness for both traditional hedge funds and digital asset strategies, including the newer dimensions allocators now probe, from on-chain risk oversight to the use of AI in fund operations. Study the failures section carefully; most governance lessons in this industry were paid for by someone else.

Boards and independent directors

• The role of independent directors in Cayman hedge funds
• Independent directors for digital asset funds
• What a good crypto fund board actually does
• The fund board and risk oversight
• CIMA corporate governance rules for fund managers
• Governance committees in hedge funds
• Governance as a capital raising asset

ODD and DDQs

• How to pass operational due diligence as a new hedge fund
• ODD for digital asset funds: what really matters in 2026
• The hedge fund DDQ
• What investors really ask in crypto fund DDQs
• What the institutional DDQ tells investors
• The due diligence process after the pitch
• The allocator red flag checklist
• The allocator's checklist before a $50m ticket

Valuation and side pockets

• The fund valuation policy
• Valuation, NAV and investor reporting
• Side pockets in crypto funds
• The complete guide to side pockets
• Side letters and governance risk

Governance failures and lessons

• Lessons from the largest hedge fund governance failures
• Why hedge funds shut down
• The fund failure playbook
• Lessons from funds that never launched
• Key person risk for emerging managers
• The hidden conflicts of interest reshaping digital asset risk

On-chain and AI oversight

• Independent governance over on-chain risk
• AI and real-time fund governance oversight
• LLMs in fund operations and compliance
• Can an autonomous agent be an investment manager?

Frequently asked questions

How many independent directors does a fund need?

CIMA's corporate governance framework and allocator expectations both point to genuine independent representation on the board; the norm for institutional vehicles is at least two. See the role of independent directors.

When should ODD preparation start?

Before launch. Retrofitting controls after an allocator asks is materially harder than designing them in. Start with how to pass ODD as a new fund.

What belongs in a valuation policy?

Pricing sources and hierarchies, fair value procedures for illiquid or hard-to-price assets, side pocket mechanics, and who signs off. The valuation policy guide covers each element.

Related hubs

• Digital asset fund operations
• Cayman fund formation
• Launch and operate a Cayman hedge fund