What is a Fund of Hedge Funds?

• A diversified portfolio of generally uncorrelated hedge funds. The mix of underlying funds depends on the investment objectives of the fund of funds.
• May be widely diversified, or sector or geographically focused.
• Seeks to deliver more consistent returns than stock portfolios, mutual funds, unit trusts or individual hedge funds.
• Is the preferred investment of choice for many pension funds, endowments, insurance companies, private banks and high-net-worth families and individuals, who have insufficient expertise and understanding of the different hedge funds and hedge fund strategies to make their own selection..
• Provides access to a broad range of investment styles, strategies and hedge fund managers for one easy-to-administer investment.
• Provides more predictable returns (depending on the objectives of the fund of funds), than traditional investment funds.
• Provides effective diversification for investment portfolios.