Fund of Funds Investing

2014-09-29

Fund of Funds Investing: A Roadmap to Portfolio Diversification

Through interviews with high-level fund managers, as well as first-hand industry experience, Dan Strachman and coauthor Richard Bookbinder present sophisticated content to investors, managers, and consultants on the world of funds of funds investing.Hedge funds look to provide investors with: positive returns regardless of market conditions, avoid significant draw-downs, and add performance that cannot be achieved by traditional investments.Asset growth in the hedge fund industry has been fueled by investors of all shapes and sizes including, pension plans, endowments, foundations, private banks, family offices and high net worth individuals.Furthermore, as pension fund allocators look to find solutions to the burgeoning growth of baby boomer retirement plans with participants approaching the golden years, asset allocators are turning more to fund of funds to meet the need of their constituents.As the capital markets have become more efficient, investors have experienced a moderation of returns, leaving them with questions about how to increase portfolio performance without increasing risk.Funds of funds is one such avenue to pursue.A Users Guide to Funds of Funds Investing provides the tools investors need to understand and evaluate their investments in this often misunderstood and opaque area of the investment community.

Daniel A.Strachman (New York, NY) is a Managing Partner of A s School of Continuing Education.He is a frequent speaker at industry conferences like NYSSA and forums as well as in the media on the money management industry.Mr.Strachman graduated from Clark University with a Bachelor of Arts.Richard S.Bookbinder (New York, NY) formed Bookbinder Capital Management LLC in the spring of 1999 and is actively involved in all aspects of business operations including fund management, portfolio allocation, and manager research.Mr.Bookbinder currently manages 2 funds of funds, The Roebling Fund LP launched October 1999, and Caisson Partners LP, an insurance dedicated fund launched November 2004.He also acts as a sub-advisor to investors seeking customized hedge fund of fund portfolios.Mr.Bookbinder earned a B.in Economics from Upsala College.He is a frequent speaker at hedge fund industry conferences sponsored by groups including Edge Forum, IIR, Strategic Research Institute, and Lipper Hedge Fund.

Title Page
Introduction
CHAPTER 1 - On the Road
THE MODERN HEDGE FUND INDUSTRY
WHERE HEDGE FUNDS CAME FROM
THREE WISE MEN
SOPHISTICATED INVESTORS
HEDGE FUND BOOM TIME
WHY FUND OF FUNDS
INSTITUTIONAL INVESTORS LOVE HEDGE FUNDS
CHAPTER 2 - A Hedge Fund Is What?
THE CREDIT CRISIS AND HEDGE FUNDS
HEDGE FUNDS ARE AN ASSET CLASS
LIQUIDITY PRESENTS PROBLEMS
TECHNOLOGY HELPS THE INDUSTRY
ACTIVISM IS A NEW BUZZ WORD
PRIVATE EQUITY AND HEDGE FUNDS
HEDGE FUNDS AROUND THE WORLD
ALTERNATIVE INVESTMENTS
CHAPTER 3 - How Large Is the Market?
HEDGE FUND DATA IS WEAK
REPORTING IS WEAK
INSTITUTIONALIZATION OF HEDGE FUNDS
CHAPTER 4 - Hedge Fund Investing
PRICING PROBLEMS
HEDGE FUNDS AND THE PRESS
THE FUND OF FUNDS VALUE PROPOSITION
FEES
ALLOCATION STRATEGIES
BOUTIQUE INVESTING
IVY AND BoNY
CHAPTER 5 - Understanding Alternative Investing Is Both Math and Science
HEDGE FUND RETURNS
DELIVERING ALPHA
INVESTING IN A FUND OF FUNDS
THIRD-PARTY MARKETERS
WHERE THE MONEY COMES FROM
THE NEW NEW MANAGERS
CHAPTER 6 - Why Fund of Funds Work
THE EARLY ADOPTERS
WHO INVESTS
GROWING ASSETS
EVERYONE IS INVESTED IN THE SAME THING
EDUCATION
GOING DIRECT
CHAPTER 7 - Understanding Risk and the Need for Due Diligence
LTCM ISSUES
WHAT HAPPENED?
LEVERAGE AND LIQUIDITY
UNDERSTANDING DUE DILIGENCE
UNDERSTANDING HOW MONEY IS MADE
MANAGED ACCOUNTS
WHAT TO LOOK FOR FIRST
FEE CHANGES
CHAPTER 8 - Redemption
REDEMPTION REQUESTS
FUND OF FUNDS DUE DILIGENCE ISSUES
LESSONS LEARNED
HOT MONEY, COLD RETURNS
NEW CHALLENGES
LIQUIDITY ISSUES
CHAPTER 9 - Fees
INCENTIVE FEE
MORE OR LESS
MULTI-MANAGER FUNDS
RESULTS VERSUS FEES
CHAPTER 10 - Leverage Facilities and Risk Management
LEVERAGE AND PRIME BROKERS
RISK MANAGEMENT
RISK
LIQUIDITY ISSUES AT PRIME BROKERS
VALUATION RISK
THE DEMAND FOR BIG FIRMS
CHAPTER 11 - Recent Lessons Learned and Current Trends
WHERE THE RISK IS FOUND
DELEVERAGE ISSUES
FUND OF FUNDS FIRST
THE END OF AN ERA
CHAPTER 12 - New Products
130/30 FUNDS
HEDGE FUND REPLICATION
OPPORTUNITIES IN EMERGING MANAGERS
RISKS ASSOCIATED WITH NEW HEDGE FUNDS
CHAPTER 13 - Multi-Strategy Funds versus Hedge Fund of Funds
DRAWDOWN ISSUES
HOW BLOWUPS AFFECT THE INDUSTRY
CONVERGENCE IN THE HEDGE FUND INDUSTRY
CHAPTER 14 - How Fund of Funds Source Managers
WHERE MANAGERS COME FROM
BLENDING METHODOLOGIES
CHAPTER 15 - Conclusion
WHAT WE CAN AGREE ON
DON'T OVERLOOK DUE DILIGENCE
HINDSIGHT IS 20/20
STILL, WE BELIEVE
THE ANSWER ON FEES

上一篇:Hedgehogging