keeping everybody happy

Funds of hedge funds are growing rapidly within the alternative investments industry as institutional investors jump on the bandwagon. However, as managers seek out returns from ever more strategies, so the administration of the funds becomes more complex

The fund of hedge funds arena has shown tremendous growth in the recent past. Estimates vary on assets controlled by funds of hedge funds, but the total is likely to approach, and more likely exceed, $100bn by the end of 2004.

The growth has come as a result of the higher profile of hedge funds generally, and the accompanying perception that an investment in a fund of hedge funds offers a low-risk entry point for institutional and retail investors alike.

The advantage of a fund of hedge funds

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