http://www.hedgeco.net/blogs/2009/09/04/fund-of-hedge-funds-industry-shrinks-but-still-strong/ HedgeCo.Net Hedge Fund Blog & Opinions Sun, 13 May 2012 14:40:28 +0000 hourly 1 http://wordpress.org/?v=3.1.2 http://www.hedgeco.net/blogs/2009/09/04/fund-of-hedge-funds-industry-shrinks-but-still-strong/comment-page-1/#comment-7104 davereynolds Tue, 08 Sep 2009 11:57:15 +0000 http://www.hedgeco.net/blogs/?p=952#comment-7104 I agree that fund of funds firms will ultimately benefit from the recent rash of fraud within the hedge fund world. Although the added layers of fees will prevent fund of funds from equaling the returns of solo hedge funds, their popularity should rebound considerably in the coming years. As institutions, pension plans, and high net worth investors place a greater emphasis on manager selection and due diligence processes, it would only seem natural that much of this time and capital-intensive work will be outsourced to fund of funds firms. I agree that fund of funds firms will ultimately benefit from the recent rash of fraud within the hedge fund world. Although the added layers of fees will prevent fund of funds from equaling the returns of solo hedge funds, their popularity should rebound considerably in the coming years. As institutions, pension plans, and high net worth investors place a greater emphasis on manager selection and due diligence processes, it would only seem natural that much of this time and capital-intensive work will be outsourced to fund of funds firms.

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