Exploiting the fund of hedge funds market to add value and limit risk

The Debate

This week the Conjecture panel discuss the benefits of fund of hedge funds

With capital inflows to hedge funds causing concerns and depleting returns, the dynamic of the hedge fund world is changing. But in order to exploit the remaining alpha generated by such managers, Mark Barker of Pioneer and Teun Johnston of Crédit Agricole argue that a fund of hedge funds can help limit the downside risk of these alternative investments and add value in terms of exposure to uncorrelated assets. How does bottom-up versus top-down work when it comes to buying hedge funds? Mark Barker (MB): It's a matter of how you define the philosophy. It's not that we don't do top-down,...