This is the second article in our three-part series on hedge fund manager office sharing arrangements. For managers, sharing office space has the allure of efficiency and cost saving, but it comes with real regulatory and operating risk. This article enumerates the five primary risks of office sharing and discusses six proven strategies for mitigating those risks. The first article in this series defined office sharing, outlined its mechanics and catalogued the four primary business reasons for office sharing by hedge fund managers. The last article in this series will cover allocation of costs and risks, the role of prime brokers in office sharing arrangements and how managers sharing office space should negotiate on-site due diligence visits from institutional investors. See “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).