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.
The week on Risk.net, December 2–8, 2017Receive this by email