Shain

To see how a résumé checks out, Mr. Shain says, pick up the phone and call the manager's former boss and former colleagues.

Danger! Danger! Rob Curran 2011

This week my father and his fellow "Man Bites Dog" creators, Michael Shain and Mike Pearl of the New York Post, got an interesting request for permission to use promotional videos for their card game as part of an educational program.

Charlie Carillo: An Ivy League of His Own Charlie Carillo 2012

While it's not unheard of for a hedge fund to approach a wealthy individual, reputable funds usually concentrate their prospecting on institutional investors, says Randy Shain , executive vice president of First Advantage Litigation Consulting, who has been looking into hedge funds for 20 years.

Danger! Danger! Rob Curran 2011

Mr. Shain likes to start this part of the investigation with services such as LocatePlus, which provides access to its databases of names, addresses, dates of birth and, in some cases, Social Security numbers starting at about $25 a month.

Danger! Danger! Rob Curran 2011

While the administrator likely won't share the statements with a potential investor, Mr. Shain recommends contacting the agent to make sure the fund is in good standing.

Danger! Danger! Rob Curran 2011

Mr. Shain does a range of searches in public records to hunt down anything untoward in a firm's history, including looking at corporate and court records.

Danger! Danger! Rob Curran 2011

Services such as Lexis-Nexis provide many case briefs and are a good place to start, but to find a more complete legal history, Mr. Shain says, you have to go to the state and local criminal and civil courts.

Danger! Danger! Rob Curran 2011

Also look into potential conflicts of interest between the fund and its watchdogs, says Mr. Shain of First Advantage.

Danger! Danger! Rob Curran 2011

Other places to look for the nitty-gritty on the firm include industry newsletters and analyst reports, Mr. Shain says.

Danger! Danger! Rob Curran 2011

When hedge funds blow up, "a lot of the time they feature someone who had significant things in their history that don't add up," says Mr. Shain.

Danger! Danger! Rob Curran 2011