Study says funds of hedge funds see limited diversification benefits

FoHFs see limited diversification benefits

numbers-pa

Investing in hedge funds can be a risky business. For this reason, it is logical to assume funds of hedge funds (FoHFs) should protect themselves by diversifying across as many underlying hedge funds as possible.

However, a recent academic study led by Stephen Brown, a professor of finance at New York University’s Stern School of Business, challenges this assumption. A misplaced emphasis on diversification may be contributing to performance degradation and increased tail risk in FoHFs, according

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact info@risk.net or view our subscription options here: http://subscriptions.risk.net/subscribe

You are currently unable to copy this content. Please contact info@risk.net to find out more.

Sorry, our subscription options are not loading right now

Please try again later. Get in touch with our customer services team if this issue persists.

New to Risk.net? View our subscription options

If you already have an account, please sign in here.

Register

Want to know what’s included in our free membership? Click here

This address will be used to create your account

You need to sign in to use this feature. If you don’t have a Risk.net account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here: