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.
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