An on-site visit has become an essential element of a hedge fund operational due diligence program.  As one allocator told the HFLR, “There are a few important questions that can only be asked while looking into the eyes of the COO or CFO.”  But what are those questions and, more generally, what practices, approaches and techniques can investors implement to extract maximum value from an on-site visit?  This article is the second in a three-part series detailing how and why investors should perform on-site due diligence visits.  Based on insight from operational due diligence veterans, this article describes how investors should conduct diligence visits, and how managers can prepare for them effectively.  The first article focused on the rationale for the on-site visit and the mechanics of preparation.  The third article will discuss further on-site procedures, including red flags to identify, and an investor’s options following the on-site visit.  See also “Evolving Operational Due Diligence Trends and Best Practices for Due Diligence on Emerging Hedge Fund Managers,” Hedge Fund Law Report, Vol. 7, No. 15 (Apr. 18, 2014).