Consultants “a one-way challenge” to funds of hedge funds

But advisers add little value, select large under-performing funds

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At the time of the financial crisis, funds of hedge funds’ (FoHF) assets under management fell from around $800 billion in 2007 to $590 billion in 2008. It has barely recovered since: FoHFs managed $660 billion at the end of 2013, according to Hedge Fund Research, a data collator, that counts about 700 FoHFs that have simply disappeared. At the same time, investment consultants have muscled in and taken much of the industry’s business.

There is plenty of bad blood between investment consultants a