What is the key thing for a pension fund investing in fund of hedge funds to get right?
As more pension funds move towards allocating to funds of hedge funds (FoHFs), the need to understand the risks, as well as the opportunities, becomes even more crucial.
A wide range of skills is needed. These include providing diversification but not at the expense of returns. This could include not just a broad range of single funds within the portfolio, but also sector and geographical exposure spreads. Some