The biggest risk facing the fund of hedge funds (FoHF) business is finding performance. "We are all going to have to eke out performance a basis point at a time," says Luke Ellis, CEO and chief investment officer of FRM, part of Man Group. "It's not like there are going to be easy home runs. There is an 80% likelihood that we get another year of churning, grinding markets. We all have to be smart in the way we make money out of that environment."
The way Ellis and FRM make money is by providing