Fund of Funds Investing: A Roadmap to Portfolio Diversification


  • Pages: 222
  • Format: PDF
  • Published Date: 2010


In Fund of Funds Investing, hedge fund expert Daniel Strachman and fund of funds manager Richard Bookbinder offer valuable insights into this world through an industry overview and review of essential issues including due diligence, risk and portfolio management, and multi-strategy funds.

Author’s Introduction:

In Fund of Funds Investing: A Roadmap to Portfolio Diversification, we take a brief look back at the history of the fund of funds industry, examine where the industry is today in the wake of the Madoff scandal, the credit crisis, and the failure of many hedge fund managers to perform over the past few years. Our goal is to provide both a roadmap for first-time investors looking for an entry point into the wacky, wild, weird, and exciting world of fund of funds investing and a resource guide for sophisticated investors who may not be certain what the optimum investment approach should be for allocating their assets.

Fund of Funds Investing: A Roadmap to Portfolio Diversification provides a unique and insightful overview of this often misunderstood and opaque area of the investment community. Through a series of high-level interviews as well as direct industry insight, we have worked to give you access to this area of the investment marketplace that is often thought of as closed or secretive. Our goal is to provide you with what you need to make solid investment decisions.

In the following pages, we explain the how’s and why’s of fund of funds investing. Our intent is not to offer investment advice but rather to enable you to make good investment decisions—smarter investment decisions. We hope that you use this book as a guide to the fund of funds industry and alternative investment investing. Think of it as a resource that you can turn to repeatedly to become a better investor.


  • On the Road
  • A Hedge Fund Is What?
  • How Large Is the Market?
  • Hedge Fund Investing
  • Understanding Alternative Investing Is Both Math and Science
  • Why Fund of Funds Work
  • Understanding Risk and the Need for Due Diligence
  • Redemption
  • Fees
  • Leverage Facilities and Risk Management
  • Recent Lessons Learned and Current Trends
  • New Products
  • Multi-Strategy Funds versus Hedge Fund of Funds
  • How Fund of Funds Source Managers