| Topic Name: |
Fund of Funds |
| Message Name: |
. |
| Date Posted: |
03/08/2003 |
| In Reply To: |
I'm trying to get a better understand of what Fund of Funds are and how they operate. I am fairly well versed in the hedge fund industry with the different strategies/managers ... so are fund of funds essentially a hedge fund that invests in other hedge funds based on managers, strategies, etc.?
Is it anything like private equity or LBO shops, where you have a controlling stake, and get to have a say on the management and operations of the hedge fund ... or is it simply investing. What is the upside and downside to it?
How can you tell if they're good or not (based on capital? management expertise?)
Any help would be great. |
| Message: |
they are funds that invest their money in other market focussed funds. they supposedly are more professional and cheaper than private investors working for them selves assessing opportunities and private client placement services.
you can invest less in these than directly in most hedge funds. they therefore diversify idiosyncratic risk for investors with less than 10 or 20m to invest.
they would have varying amounts of influence on the subjects of their investments. its a normal client/ business relationship in that respect.
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