Hello, Anybody in here invest in FUNDS of FUNDS? I'm looking for some recommendations on good funds of funds and the intial capital requirement. a. Some in emerging markets funds of funds? b. mininmal capital requirement c. Your experiences with them and return avg? Thanks
Forgive me my ignorance what are the advantages of fund of funds compared with regular fund? Are they going to outperform the best graded regular funds in each sector? Plus they should be more expensive too.
Funds of funds basically means low volatility (more diversified), You really have to "know" the hedge fund MANAGER to invest in them which takes a LOT of legwork and traveling which also should not be done unless you have more then $10M+ To invest. The Minimum capital for funds of funds is usually a lot less, maybe $50k mininum instead of the usual $100k for direct hedge fund investing. You also won't get any support if you are a small $100k direct investor in a hedge fund where a FUND OF FUND manager can drill the manager any time any day because he has $50M invested and know exactly what is going on cause he's a big fish And gains that better S&P by a few hundred basis points, but most of all low volatility.
You mean funds that invest in emerging markets outperform S&P by few hundred points? Or funds that invest in small caps & micro caps outperform S&P by few hundred points? Actually after rereading your post I probably don't know what I'm talking about - I always thought that funds of funds invest in other mutual funds.