SCOTT SCHWEIGHAUSER, HARRIS ALTERNATIVES

The apparent cost advantage of going directly to hedge fund managers must outweigh the "one-stop shopping" benefits and investment return advantages of investing through a fund-of-funds vehicle.

Direct investors must contemplate the additional and quite substantial costs of establishing fully-functioning portfolio management and research teams and a data/technology infrastructure to provide the comprehensive sourcing, due diligence, and monitoring necessary for active hedge fund investing. It is