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Potentially Better Risk-Adjusted Returns
  • May be able to generate alpha through manager selection, portfolio construction and active oversight
Risk Reduction
  • Generally, funds of hedge funds have lower correlations to equity and fixed income markets than individual hedge funds
  • Non-directional hedge funds are a different asset class from traditional asset classes
  • Limits downside risk of an individual hedge fund blowup
Volatility
  • Investors benefit from consistency and compounding rather than magnitude of returns
Diversification
  • Fund of hedge fund diversification likely more effective than investor just adding direct fund investments
  • Different hedge fund strategies work better at different times so having a diversified portfolio of strategies is desirable
  • Permits diversification that is not possible given high minimum investments for most hedge funds
Access
  • Enables investors to invest in hedge funds that they would otherwise not be able to access
Expertise, Due Diligence & Monitoring Requirements
  • Hedge funds are complex and require in-depth analysis and expertise
  • Substantial time commitment is required prior to investing and once invested
Informational Advantage
  • Constant monitoring of markets and alternative strategies allows funds of hedge funds management to shift among strategies quickly and efficiently to take advantage of opportunities
Price for Funds of Hedge Funds Benefits
  • Incremental fees are modest compared to substantial additional benefits to investors



Firm Overview
Firm Overview
Offerings
Offerings
Team
Team
Contact Us
Contact Us
Written Materials
Written Materials