Fri, Feb 27, 2015
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. Opalesque Exclusive: Very small CTA averages 6.90% per month since April’14 inception[more]

    Benedicte Gravrand, Opalesque Geneva for New Managers: There aren’t many one-man shops around in the hedge fund world but we talked to one. Andrew S. Peskin, who is ba

  2. Opalesque Exclusive: Skënderbeg launches four single-manager funds with Your Wealth AG[more]

    Benedicte Gravrand, Opalesque Geneva for New Managers: Skënderbeg Funds AGmvK, an investment fund for qualified investors under Liechtenstein law (umbrella fund),

  3. Opalesque Roundtable: Many Swiss investors are questioning the value proposition of hedge funds[more]

    Benedicte Gravrand, Opalesque Geneva: There is a well-known transition among investors in hedge funds between high-net-worth individuals and institutional investors, Ian Hamilton, head of the IDS Group, said during the recent

  4. UCITS HFS Index starts year on positive note with 1.09% gains in January[more]

    Komfie Manalo, Opalesque Asia: The UCITS HFS Index started the year on a positive note gains of 1.09% in January after finishing 2014 with a modest performance of 1.62%. Index provider 2n20 said th

  5. Legal - Case builds against former New York hedge fund ‘Buddy’ Fletcher[more]

    From NYPost.com: Disgraced former hedge fund operator Alphonse “Buddy” Fletcher’s trail of broken promises and red ink just got a little longer. A Manhattan judge has ruled that the 49-year old investor owes his former law firm $2.7 million in unpaid legal bills. Add that to the more than $100