Funds of hedge funds providing an alternative to with-profits

The Debate

This week's Conjecture panel discusses whether FOHFs are meeting client needs

Funds of hedge funds (FOHF) are increasingly popular with product providers but are they really meeting client needs? That was the topic at the heart of the most recent debate on Conjecture. Jupiter's John Chatfeild-Roberts, who runs an offshore FOHF, along with multi-strategy FOHF managers Luca Roberi of Pioneer and Teun Johnson of Credit Agricole debated the issues of cost, correlation to equities, risk and return. They agreed that a 5% TER on a FOHF was acceptable but disagreed on what returns, after fees, investors should expect and how broadly diversified a FOHF had to be to achieve ...