Fund of Funds Investing: A Roadmap to Portfolio Diversification
As capital markets continue to evolve, and become more efficient, investors are experiencing a moderation of returns. This has put many institutions, and individuals, in the difficult position of finding better ways to increase portfolio performance without increasing risk. InFund of Funds Investing, hedge fund expert Daniel Strachman and fund of funds manager Richard Bookbinder provide you with the information needed to achieve this elusive goal.Written in a straightforward and accessible style,Fund of Funds Investingoffers a unique overview of this often misunderstood and opaque area of the investment marketplace. Through a series of high-level interviews, as well as direct industry experience, Strachman and Bookbinder explain the how's and why's of fund of funds investing, while providing you with the insights needed to make solid decisions about them—including how a fund of funds may fit into one's portfolio.Whether you're just beginning to look for an entry point into the fund of funds arena or have a firm understanding of how they operate, this reliable resource has what you need to succeed. Page by page, it addresses essential issues including:How diversifying through fund of funds investing can deliver specific risk/return profiles unattainable through single manager investingFund structures and feesWhy the need for due diligence does not diminish when investing in a fund of fundsThe factors that affect alpha generation in an uncorrelated portfolioAnd much more about investing, the markets, and the mayhem of 2008Along the way, this book also looks back at the history of the fund of funds industry and examines where the industry is today—in the wake of Madoff, the credit crisis, and the failure of many hedge fund managers to perform during the extreme volatility of 2007, 2008, and even 2009.Fund of funds will continue to grow in importance over the coming years. In order to effectively understand and evaluate these investments, you need the practical guidance that can only be found in Fund of Funds Investing.