Economies of scale polarises the fund of hedge fund arena

The gap between the larger and smaller players in the fund of hedge fund arena is set to widen due to economies of scale and resources, according to leading hedge fund experts.

Rainer Marc Frey, member of the executive board and head of strategic developments at Man Investments, told the GAIM conference larger firms with greater resources could commit more to finding new managers, and also take greater risks with capital if they wished.

Frey said many investors saw the fund of funds industry as

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