Funds of Hedge Funds (FoHF) are rapidly the fastest growing strategy within the hedge fund industry. According studies, FoHF account for over 23% of entire industry, and is will soon account for nearly one-half of all hedge fund investments.
WHAT IS A FUND OF HEDGE FUNDS (FoHF)?
A hedge fund that serves as an umbrella portfolio which feeds capital into other hedge funds
Seeks to deliver consistent returns than traditional stock portfolios and individual hedge funds
Provides high net worth and institutional clients with direct access to many different hedge funds that would otherwise not be possible due to its high minimum investment
Is an efficient and effective diversification tool
Is the preferred investment choice of many pension funds, endowments and private banks as it is perceived to be less risky than single hedge funds
Can provide investors to either defensive or opportunistic strategies
Significantly reduces fund and manager risk
Eliminates the need for time-consuming due diligence otherwise required if investing in an assortment of hedge funds
