Small FoHF proves experience and nimbleness produce performance

12th Annual European Fund of Hedge Funds Awards 2013

Headstart finds being small is an advantage for a FoHF

Size and experience are critical factors in the risk-adjusted return potential of funds of hedge funds (FoHFs). In most cases one does not exist without the other. As with single hedge funds, the greater a company’s experience, the greater its size and as a result the lower its potential returns.

A sweet spot exists in the middle, however, where funds with longstanding experience remain small and nimble enough to outperform. This happy medium sits at the heart of Headstart Advisers’ offering.