When great minds don't think alike

funds of hedge funds

Many funds of funds (FoFs) divide hedge funds into classification systems based on the strategy they pursue, but increasingly the many styles and strategies makes it harder to fit managers into existing classification systems.

One way to deal with this is to increase the number of strategy segments in the portfolio.

Sometimes this can give a false sense of security that the portfolio is well diversified as in reality strategies are more closely related than it might appear. One method that can

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