Technology and transparency is key to reinvention of funds of hedge funds

Ahead of the curve

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Fund administrators have introduced a new generation of technology platforms and services for funds of hedge funds (FoHFs) that could help the industry improve its investment and risk management processes.

The FoHF business is in the midst of a major transition. FoHFs have seen assets under management (AUM) fall by almost a third since 2007 and investors are increasingly questioning the merits of using an intermediary to invest in hedge funds.

FoHFs are being forced to reinvent themselves. This ha