Index providers fail FOFs in strategy classification

Fund of funds managers must take the lead in classifying hedge funds by strategy to counter the confusion caused by different index-providers classifying the same fund differently, according to hedge fund industry experts. Drago Indjic, head of research at fund of hedge fund managers Fauchier Partners, told delegates at the Risk Invest Europe 2003 conference in London last week that index providers caused confusion because hedge funds were classified differently according to the index provider. "The classification of hedge funds is an open problem," Indjic said. He cited a study by the Al...