How to Select a Hedge Fund of Funds: Pick the Winners and Avoid the Losers

The risks and opportunities of investing in hedge funds through fund of funds are not clear to most investors. This user-friendly guide enables investors to better understand hedge funds of funds, written by one of the leading consultants to institutional investors in hedge funds. The topics include hedge fund evaluation, portfolio construction, due diligence, monitoring, performance attribution and benchmarking.Part I describes what are hedge funds of funds, where do they fit in a portfolio, and who should invest. Part II covers the hedge fund of fund market-place. This section discusses the growth in assets and entities, the role of the consultant, benchmarking and investable indexes, regulation and fund structure. Part III provides an analysis of hedge funds of funds. This section discusses how to pick the winner and avoid the losers, including use of performance in fund of fund evaluation, portfolio construction, hedge strategy allocation, and manager selection, due diligence, monitoring and fund of fund organizational review.