We employ a Chief Financial Officer, Chief Compliance Officer, Controller and top-tier service providers to manage operational risk.
The Fund’s cash is primarily held in custody at Goldman Sachs, but Red Mountain also maintains a bank account and a second custody account with State Street Bank and Trust Company (“State Street”). We require the signature of an authorized signatory to open accounts and to execute transfers of cash and securities.
We maintain internal controls and procedures at each stage of the trading cycle, including trade authorization, execution, settlement, reconciliation and accounting. In addition, we segregate duties between those who are authorized to trade and those who are responsible for recording trading activity.
Our operations and compliance teams maintain the Fund’s authorized signatory list and are responsible for providing updates to the list to Goldman Sachs and State Street.
Since inception, the Fund has experienced no significant operational issues.