Wed, May 4, 2016
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Alternative Market Briefing

Zenith asks if the perceived expense of funds of funds is accurate

Monday, May 13, 2013

Beverly Chandler, Opalesque London: Zenith Investment Partners’ Daniel Liptak examined the widely debated theory that funds of hedge funds are dead in this month’s issue of their alternatives newsletter. Starting from a piece in the March issue of InvestHedge by Greg Fedorinchik of Mesirow, Liptak reports that the article looked at the cost of accessing hedge funds through four approaches: Investment in a commingled FoHF; Investment in a single investment fund (fund of one) managed by an external expert; Direct investment in hedge funds with the help of a generalist consultant; Direct investment in hedge funds with the help of a specialist hedge fund consultant.

Liptak reports that the costs required to invest directly in hedge funds are those that an indirect approach can reduce. Principally, these costs are the level of service provided by the consultant, the cost of internal staff to execute and monitor the investments. For Fofs, the key costs are considered the management fee and the type of structure – commingled or fund of one. And importantly, the scale of the Fof in negotiating fees with underlying managers.

Fedorinchik argues that the fee negotiating ability of a Fof can result in meaningful cost reducti......................

To view our full article Click here

Today's Exclusives Today's Other Voices More Exclusives
Previous Opalesque Exclusives                                  
More Other Voices
Previous Other Voices                                               
Access Alternative Market Briefing


  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. Hedge funds see $14.3bn outflows in Q1, CTAs and multi-strategy lead net inflows[more]

    Komfie Manalo, Opalesque Asia: The hedge fund industry saw net outflows of investor capital in the first quarter of the year, totaling $14.3bn, data from Preqin showed. This continues from the $8.9bn overall net outflows that funds recorded in Q4

  2. Third Point calls Q1 "catastrophic" for hedge funds[more]

    Bailey McCann, Opalesque New York: The first quarter of this year was rocky for hedge funds based on aggregate performance from the industry, but now we are beginning to hear what the managers thought of it as quarterly letters make their way to investors. Dan Loeb, CEO of New York-based $17 bill

  3. Asia - Stabilization of China's capital outflows may hinge on Janet Yellen, Fink says China to do well this year as bubble threat postponed, Chinese hedge fund to invest in India’s infrastructure[more]

    Stabilization of China's capital outflows may hinge on Janet Yellen From Bloomberg.com: Whether China’s recent stabilization of its currency and capital outflows continues -- or downside pressure reignites -- may hinge in large part on Janet Yellen. If the Federal Reserve chair sticks to

  4. …And Finally - After all, judges are human too[more]

    From Newsoftheweird.com: In March, one District of Columbia government administrative law judge was charged with misdemeanor assault on another. Judge Sharon Goodie said she wanted to give Judge Joan Davenport some files, but Davenport, in her office, would not answer the door. Goodie said once the

  5. Comment - Unmasking the men behind Zero Hedge, Wall Street's renegade blog[more]

    From Bloomberg.com: Colin Lokey, also known as "Tyler Durden," is breaking the first rule of Fight Club: You do not talk about Fight Club. He’s also breaking the second rule of Fight Club. (See the first rule.) After more than a year writing for the financial website Zero Hedge under the n