Well, it's been over an year since I started my hedge fund. My capital is sufficient and doing well, thanks to all the informative posts in ET. I'm now getting an offer to work for a funds of fund. First, they're a client I have right now. What they want is to takeover my current operation. Of course, one issue is they want to get my other current clients to invest into their list of funds. But the major issue is they don't have a lot of good funds to invest in. The majority of the funds are what you see in bank operated portfolios where the performances are not impressive. They are looking to increase the performance of the FoF by having me bring in and find quality funds + modify the series of models they currently have (surprisingly they use Excel... dudes... I'm located in Japan... you can't expect much sophistication). FROM MY CURRENT CONDITION, I WOULD LIKE TO START A BROAD DISCUSSION and get some feel out of FoF operation via people in ET. What are your thoughts on Funds of Fund? What are your thoughts on the difference between SYSTEM PORTFOLIO and FUND PORTFOLIO? Any ideas and thoughts on the risk management side? AGAIN, THIS IS ONLY FOR DISCUSSION PURPOSE. I'M ONLY TRYING TO GET A FEEL OF THE FOF industry.