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Description of Hedge Fund of Funds Investing

Comprised of multi-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. This text looks at creating, combining and managing investments with multiple hedge funds as a fund of funds - to achieve specific investment objectives as well as the overall strategic diversification valued by institutional and individual investors alike. The author explains the building blocks of a fund of funds and how they can be incorporated into a traditional portfolio. He also explains how to evaluate risks, estimate potential returns and choose statistical measurement methods.

Title Information

ISBN:

9781576601242

Pages:

260 pages

Format:

Hardback

Product Code:

17868

Publisher:

John Wiley & Sons Ltd

Published:

01/01/2004

Press and Industry Reviews

�While hedge fund of funds have proliferated as a relatively new investment vehicle, reliable information about these vehicles has been limited. Joe Nicholas's timely book does a magnificent job of providing concise, valuable information about these popular new funds.�
- Dan Rauchle
President, Wells Fargo Alternative Asset Management


"A creative and disciplined work that offers powerful insights into the fast growing word of fund of funds investing and strategies. A quick and informative read for both the HNW and intitutional investor."
- Lawrence Simon
President and CEO, Ivy Asset Management Corporation


�Hedge Fund of Funds Investing provides a thorough, well-articulated discussion of the key characteristics and issues associated with investing in a fund of hedge funds. I believe the frank disclosure of both the advantages and disadvantages of these vehicles, as well as the information on selecting a fund of funds, will make this book required reading for individual and institutional investors alike.�
- Frank Belvedere CFA, F.C.I.A.,
Vice president of alternative investments, Montrusco Bolton, Montreal, Canada


�This is a great reference for those who are just beginning to invest in hedge funds, as well as those who already have a hedge fund of funds allocation. If you are new to this investment vehicle, the book provides a thorough description of fund of funds and a great framework for conducting the due diligence process. If you are already invested in fund-of-funds, it will prompt you to ask some probing questions at the next meeting with your fund-of-funds manager."
- Cindy Koury
Senior Managing Director, Victory Capital Management


"Hedge fund expert Joe Nicholas dissects the industry's hottest trend, investing in fund of hedge funds, in his new book. It's a must read for institutional and private investors alike."
- Joe Hershberger
Managing Director, Putnam Lovell NBF Securities Inc.


"Joe does it again! By taking complex and critical issues in hedge funds, he transforms them into the most accessible and readable form. Read it and reap."
- P. Morgan Kash
Senior managing director, Paramount Capital, Inc.
Board member, Hedge Fund Association
"There has been tremendous growth in the fund of hedge fund business with assets doubling in the last year. Joe clearly explains the reasons for this growth as he examines the hedge fund industry and assesses fund of hedge funds as the most effective way to gain exposure to the hedge fund arena. The book is a terrific resource for those considering an investment in hedge funds and/or a fund of hedge funds."
- Patricia Young
Managing Director and CIO, NewMarket Capital Partners, LLC


"Joe Nicholas has created an authoritative and innovative handbook of fund of funds investing that is essential for both financial and non-financial decision makers. Building upon his previous writing, he has successfully applied his practical hands-on experience to demystify the hedge fund industry using common sense explanations that do not depend on obscure jargon or understanding."
- Sara Albrecht, CFA
Executive Committee and Trustee, Museum of Contemporary Art, Chicago

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About Joseph G. Nicholas

Joseph G. Nicholas, JD, is founder and chairman of HFR Group, LLC, which includes HFR Asset Management, LLC, a fund–of–funds management company, HFR Europe, Ltd, an investment advisory firm, and Hedge Fund Research, Inc., a leading supplier of hedge fund data. Author of Investing in Hedge Funds and Market–Neutral Investing, he is a frequent lecturer and media expert on topics relating to alternative investments.

Contents of Hedge Fund of Funds Investing

Introduction

Part 1 - The Fund of Funds Industry
1 - Fund of Funds in the Hedge Fund Industry
Hedge Fund Investment Options

2 - Hedge Fund Investment Strategies

3 - Fund of Funds Mechanics and the Two-Tiered Structure

4 - Advantages and Disadvantages of Funds of Funds Advantages

Part 2 - Historical Performance of Funds of Funds
5 - Performance of Funds of Funds Fund of Funds Substrategies

6 - Fund of Funds in a Portfolio With Traditional Assets
Linear Analysis of Returns

Part 3 - A Commonsense Approach to Selecting Funds of Funds

8 - Issues in Due Diligence: The Fund of Funds Firm Background Information

9 - Issues in Due Diligence: Portfolio Management Asset Allocation/Style Selection

10 - Issues in Due Diligence: Risk Management Transparency and Separately Managed Accounts

Appendix A: AIMA Due Diligence Questionnaire
Appendix B: Excerpts from HFR Fund of Funds Industry Report