By combining the three important elements of a fund of hedge funds: due diligence, portfolio construction and ongoing monitoring, and adding to the mix a good service provider, funds of hedge funds can truly add value
A lot of criticism has been levelled at funds of hedge funds concerning their charging structure. Yes, these funds often do charge both a management fee and a performance fee; but it is also worth considering how much work goes into the running of these products and how difficult it would be for a retail investor or even a pension fund trustee to replicate. Initially, it is worth looking at the problems investors face when considering a hedge fund investment. Just as the scale of assets under management in the hedge fund universe continues to grow rapidly, the number of funds operating in ...
To continue reading this article...
Join Professional Adviser for free
Signup and gain exclusive members-only insights
- Unlimited access to real-time news, industry insights and market intelligence
- Stay ahead of the curve with spotlights on emerging trends and technologies
- Receive breaking news stories straight to your inbox in the daily newsletters
- Make smart business decisions with the latest developments in regulation, investing retirement and protection
- Members-only access to the editor’s weekly Friday commentary
- Be the first to hear about our events and awards programmes
