There have been several high-profile frauds by fund managers over the last decade that have resulted in large losses to investors. Investors, in turn, have attempted to mitigate and prevent similar issues in recent years by conducting more thorough operational due diligence (ODD) of fund managers. Although ODD efforts have improved, room remains for investors to enhance their background investigations of fund managers to prevent fraud and address other issues that may affect their investments. Corgentum Consulting, LLC (Corgentum) recently addressed this issue in a webinar featuring Corgentum managing partner Jason Scharfman that provided practical guidance on designing an efficient and cost-effective background investigation program; insights into how background investigators operate; tips for avoiding common issues; and warnings about potential liabilities around collected data. This article outlines the key points from the webinar. For additional commentary from Corgentum, see “Survey Illustrates the Views of Fund Investors on the Roles, Duties, Risks and Performance of Service Providers” (Jul. 26, 2012); and “Trends, Challenges and Best Practices for Fund Investors in Conducting Operational Due Diligence” (Apr. 19, 2012).