How is it "saving money" to endanger $5 million for the sake of $10-20 thousand? That's like buying a $5 million house with no home insurance.
eheheheh that is exactly what funds do, they disperse and invest in each other that is why when all goes to hell, most of them go to hell
There are companies that specialize in due diligence of hedge funds, alternative investments, etc. There's a cottage industry around due diligence.