Abstract
The Italian hedge fund investment managers show very lean organizational structures having outsourced most of their administrative processes and even some of their portfolio management activities. In the Italian alternative investment industry foreign advisor are playing an important role providing assistance to Italian manager in screening investment opportunities around the world and providing access to the most successful pure hedge fund manager. For Italian hedge funds, the outsourcing of administrative functions does not serve to prevent agency risk in the interest of fund investors. It is just a cost efficient solution for managing the operational procedures required to comply with regulatory obligations and to keep record of the fund transactions in the market and investors position in the fund.