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By Benedicte Gravrand, Opalesque London. This is a continuation of Friday’s Part One (here).
Opalesque spoke to several top FoHFs managers in London, who seem to agree that FoHFs remain an attractive proposition (and that can be seen with numbers); the investor base is increasingly becoming institutional; those managers who sailed through 2008 with good results will be the ones attracting capital; and the industry is bound to evolve in different ways.
Outperformance
Last year, FoHFs returned on average around -18 to -20%.
The HFRI Fund of Funds Composite Index is up 0.38% YTD and the Eurekahedge Fund of Funds Index up 0.26%, compared to the S&P 500 Index which is at -18.62% YTD (to end-Feb), the Russell 2000 at -22.11% and the Barclays Aggregate Bond Index at -1.26%.
FoHFs have annualised around +4.6% since 2000, according to Eurekahedge – compared to the S&P500 which has annualised approximately -1.8% in the same period.
According to Kevin Dolan, CEO of the $1.8bn FoHFs firm La Fayette Management, FoHFs have outperformed long-only funds, equity markets, balanced portfolios, any other investment vehicle consistently over any period – and if you look at a one-year period, 5 years, 15 years, hedge funds have delivered. Dolan feels that this is something...................... To view our full article Click here
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