Tuesday, 15 Nov 2005 11:16AM – van Eyk have released research which prescribes fund of hedge funds (FOHFs) as an attractive risk-return inclusion in portfolios, provided investors are willing to stomach high fees.
van Eyk’s senior research analyst Dr Jerome Lander said that FOHFs offered an attractive alternative returns stream with low correlation to traditional asset classes.
“The more bearish an investor is about returns from traditional asset classes, the more sense it makes to include exposure to fund of hedge funds manager in a portfolio. This is because the risk/return trade-off becomes more favorable.â€Â
FOHFs offer exposure to single manager hedge funds, aiming to diversify by through selecting hedge funds that use specialist strategies.
