Hedge Fund of Funds Investing
Shows investors how funds of funds operate and addresses the benefits and risks, and the criteria and due diligence to utilise when selecting funds.
Hedge funds have rightly gained the attention of private and institutional investors in recent years, proving themselves as useful portfolio diversifiers and preservers of wealth while greatly dispelling their reputation as an "unsafe" investment. Yet investors attempting to navigate in the field of hedge funds face significant challenges: the large number of funds, the diversity of strategies used, the range of financial instruments -traded, and the various formats for investing.
Pooling multiple hedge funds together into one vehicle, the fund of funds provides a ready solution, combining professional management expertise with asset allocation. In this book - the first of its kind - industry expert Joseph Nicholas shows investors how these funds operate, the benefits and risks, and the criteria and due diligence to utilize when selecting funds. Nicholas provides an in-depth analysis of historical fund performance and offers unique insight into the industry and trends that may affect its evolution.
Clear, insightful, and illustrated with numerous charts and graphs, Hedge Fund of Funds Investing is an essential resource for serious investors.
REVIEWS :Hardback, 288 Pages, Dimensions 234 x 156 MM Language English.
Part 1 The Fund of Funds Industry
1 Fund of Funds in the Hedge Fund Industry
2 Hedge Fund Investment Strategies
3 Fund of Funds Mechanics and the Two-Tiered Structure
4 Advantages and Disadvantages of Funds of Funds Advantages
Part 2 Historical Performance of Funds of Funds
5 Performance of Funds of Funds Fund of Funds Substrategies
6 Fund of Funds in a Portfolio With Traditional Assets
Part 3 A Commonsense Approach to Selecting Funds of Funds
7 Defining Objectives and Identifying Candidates Step 1: Define Objectives and Parameters
8 Issues in Due Diligence: The Fund of Funds Firm Background Information
9 Issues in Due Diligence: Portfolio Management Asset Allocation/Style Selection
10 Issues in Due Diligence: Risk Management Transparency and Separately Managed Accounts
11 Fund of Funds Selection Case Study
Appendix A: AIMA Due Diligence Questionnaire
Appendix B: Excerpts from HFR Fund of Funds Industry Report
Joseph G. Nicholas, J.D., is founder and chairman of HFR Asset Management, LLC, a leading fund of funds, and Hedge Fund Research, Inc., the industry’s leading supplier of hedge fund data. The author of Market-Neutral Investing and Hedge Fund of Funds Investing, he is a frequent lecturer and media expert on topics relating to alternative investments.