How to select best of breed managers

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Picking the top dogs among 6,000 hedge funds requires rigorous analysis and an exhaustive selection procedure that must be continually revisited

Picture the scene: the final tense moments at Crufts dog show when one dog is going to be selected as the best-of-breed champion - a selection that reflects world-class quality and calibre but ultimately comes down to the judge's choice at a given moment in time. The following year, the judge will see a different set of competitors and a different champion may be selected. Investment managers with multi-strategy hedge fund portfolios face a similar challenge. They need to ensure their funds of hedge funds (FOHFs) represent the very best selection of managers in the market at any one time -...