Hedge Fund Of Funds Investing - An Investor's Guide

Hedge funds have rightly gained the attention of private and institutional investors in recent years, proving themselves as useful portfolio diversifiers and preservers of wealth while greatly dispelling their reputation as an "unsafe" investment. Yet investors attempting to navigate in the field of hedge funds face significant challenges: the large number of funds, the diversity of strategies used, the range of financial instruments traded, and the various formats for investing. Pooling multiple hedge funds together into one vehicle, the fund of funds provides a ready solution, combining professional management expertise with asset allocation. In this book--the first of its kind--industry expert Joseph Nicholas shows investors how these funds operate, the benefits and risks, and the criteria and due diligence to utilize when selecting funds. Nicholas provides an in-depth analysis of historical fund performance and offers unique insight into the industry and trends that may affect its evolution. Clear, insightful, and illustrated with numerous charts and graphs, Hedge Fund of Funds Investing is an essential resource for serious investors. The hedge fund industry continues to grow by leaps and bounds, and within this universe, the "fund of funds" is the new star. Comprised of multiple-manager portfolios bundled together as a single multi-hedge fund product, this risk-balancing vehicle has emerged as the instrument of choice for the astute investment professional. Hedge Fund of Funds Investing walks you through the steps for creating, combining, and managing investments with multiple hedge funds as a fund of funds. Leading hedge fund authority Joseph Nicholas explains the building blocks of a fund of funds and how they can be incorporated into a traditional portfolio to achieve investment objectives and build diversification. In addition, he teaches how to evaluate risks, estimate potential returns, and choose statistical measurement methods. This book provides the key that opens the door to this fast-growing investment phenomenon. Discusses each step of creating, combining, and managing investments with multiple hedge funds for specific investment objectives as well as overall strategic diversification, discussing how to build on a traditional portfolio while assessing risks and potential returns.