The firm manages a series of venture capital and growth equity fund of funds.
All Asset uses a "fund of funds" approach and is down 8.4% this year.
Its acquisition of AlpInvest makes it the first major buy-out firm to have a private-equity fund of funds.
Ask around for a legal beagle with experience in structured notes, hedge fund of funds or variable annuities.
Each hedge fund within a fund of funds custodies the assets it manages, including pension assets, wherever it chooses.
Rusnano also acts as a fund of funds, with joint funds with Draper Fisher Jurvetson, Pangea and Domain Associates.
The easy way is to buy a diversified fund of funds that incorporates different asset classes into one portfolio.
Thirty-nine percent of direct hedge fund investors said their investments exceeded their expectations, as compared with 19% of fund of funds investors.
There is a relatively small universe of private equity fund of funds with an established track record in impact investing.
My example also assumes an annual expense ratio of 0.65% for both the individual hedge funds and fund of funds.
Hedge fund of funds custody arrangements agreed entered into by pensions clearly do not enhance safety and reduce the administrative burden.
My example focuses on an investment in a hypothetical fund of funds.
Wiener argues that the expenses of 0.34% on the new Managed Payout funds are bit high for a Vanguard fund of funds.
On the other hand, the fund of funds of funds vehicle is a clever way for pension consultants to exponentially increase their fees.
The accusations were leveled in a lawsuit filed in New York by investor Aris Multi-Strategy Fund, a New York City fund of funds.
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The drawback: The fund of funds investor pays fees to the fund of fund manager and to the managers of the underlying funds.
In our opinion, at most, only one fund of funds makes sense for pensions investing a limited portion of their assets in hedge funds.
If this were the case then the purpose of the investment restrictions would be effectively undermined with respect to the hedge fund of funds hired.
To be conservative, I assumed that the individual hedge funds that comprise the fund of funds charge fees of 1.5% of assets and 20% of profits.
"Every Tom, Dick and Harry is putting out a shingle, " laments Elizabeth Hilpman, a partner in Barlow Partners, a seven-year-old New York hedge fund of funds.
While the fund of funds approach permits diversification into a greater number of funds than a direct approach, multiple funds of funds appears to be unnecessary diversification.
Where too many financial advisors and their clients went wrong with respect to the fund of funds industry can be summed up in one word: Assumptions.
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Does the pension invest in any hedge fund of funds?
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Top Tier Capital Partners, a fund of funds, has named Sean Warren as chief compliance officer in a sign of the response of private equity to increasing regulation of the industry.
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"I don't like putting all my money with one guy, " says Altfest, who only recommends one hedge fund investment to clients--and that is a fund of funds (despite the higher fees).
Last week I was preparing to testify as an expert on behalf of an investor who had lost millions in a hedge fund of funds recommended to him by a private bank.
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Hedge funds, including fund of funds, are generally unregistered private investment partnerships, funds or pools that may invest and trade in many different markets, strategies and instruments (including securities, non-securities and derivatives).
It is a EUR 160 million fund of funds, again backed by TTGV and the European Investment Fund (EIF), as an vehicle to encourage others to take out risk in Turkish start-ups.
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Morgan Stanley, for instance, sponsors a fund of funds, Liquid Markets Fund I, that puts investors' money into an assortment of hedge funds that each impose one-way incentive fees (plus annual management fees).
"I see a pickup of interest, increased interest from family offices and fund of funds, " says Harvey Sawikin, founder and portfolio manager of Firebird Management, a New York-based fund that focuses on Eastern Europe.
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