The fund-of-hedge-funds industry is moving into the mature phase of its life cycle, characterized by consolidation, increased competition and higher barriers to entry. Since the late 1990s, endowments, foundations and now pension plans have poured money into multimanager hedge funds, in search of consistent returns and low correlation to stock and bond markets.
The New Dilemma in Fund-of-Hedge-Funds Investing
The institutionalization of the fund-of-funds business may destroy the very benefits hedge funds were set up to provide.
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