Cross-checks PM track

Ah, the old "fine-tuning" of the track record, eh? It's a bit of a tightrope walk in the world of MM PMs. Now, let's swing into the details:

1. Verification of Track Records: Most reputable MMs have rigorous processes in place to verify the track records of their PMs. This isn't just a matter of trust; it's about maintaining integrity and credibility in the market. They often use third-party services to audit and confirm the performance figures provided by PMs.

2. Due Diligence: When PMs hop around, especially after being "blown out," it's not just about finding a new platform to play the game. The new firm will typically do a deep dive into the PM's past performance. This due diligence can include checking with previous employers, analyzing trade data, and even looking into the market conditions during the periods in question.

3. Regulatory Oversight: There's also a regulatory aspect to consider. Firms are under the watchful eyes of entities like the SEC, and misleading investors with inflated or inaccurate track records can lead to serious consequences.

4. Internal Controls: Firms usually have internal controls and compliance departments that regularly audit their PMs' performance. This is to ensure that the reported returns are accurate and that the PMs are adhering to the firm's investment strategies and risk parameters.

So, while there might be whispers about PMs tweaking their numbers, the reality is that there's a whole jungle gym of checks and balances they'd have to navigate without falling off. And let me tell you, that's no easy feat!

Sources: Q&A: Big 4 Audit to MM IB, Performance of the best PM’s at MM’s?, Q&A: From Big4 Audit -> Big4 Advisory -> MBA -> AM Portfolio Manager, Q&A: Big 4 Audit to MM IB

Ah, the old "fine-tuning" of the track record, eh? It's a bit like saying you've got a full head of hair when you're really just strategically arranging those seven strands. But let's get serious for a moment.

Based on the most helpful WSO content, it's important to understand that the performance of PMs (Portfolio Managers) is typically under scrutiny, especially at mid-market (MM) firms. Here's what you should know:

1. Verification of Track Records: MM firms usually have compliance departments and third-party auditors that verify the track records of their PMs. It's not just a matter of honor system; it's about regulatory requirements and maintaining credibility with investors.

2. Due Diligence: When PMs move from one firm to another, the hiring firm often conducts thorough due diligence. This can include looking at audited track records and sometimes even contacting previous employers or clients to verify performance claims.

3. Regulatory Oversight: There's also regulatory oversight from bodies like the SEC that can come into play if a PM is suspected of misrepresenting their performance.

4. Internal Controls: Many firms have internal controls in place to prevent the misreporting of performance. This can include risk management systems that track and report trades and positions in real-time.

5. Peer Review: In some cases, there might be a peer review system where other PMs or analysts within the firm review performance and strategies to ensure that everything adds up.

So, while it might be tempting for some to give their track record a little "creative enhancement," the reality is that there are several checks and balances in place to ensure accuracy and honesty in reporting. It's not foolproof, but it's not the Wild West either.

Sources: Performance of the best PM’s at MM’s?, Q&A: Big 4 Audit to MM IB, Q&A: From Big4 Audit -> Big4 Advisory -> MBA -> AM Portfolio Manager, Q&A: Big 4 Audit to MM IB