Stand out from the crowd

As the popularity of funds of hedge funds grows, managers need to distinguish themselves from rest and investors need to be more discerning about their choice of manager. What are the benefits of investing in emerging hedge fund managers?

Investing in hedge funds has become more popular, both with institutions and private clients, and the hedge fund industry has grown enormously over the past few years. At the same time, investors are more sophisticated and have a better understanding of the risk and return profile of the various hedge-fund strategies available to them. As the industry institutionalises and matures, there are genuine concerns that hedge funds, and fund of hedge funds (Fohfs) in particular, are delivering returns that are more closely correlated and below the long-term averages. In this climate, managers nee...