a portfolio in which a professional manager will allocate capital across a range of hedge funds, which in turn may invest in a wide range if investment markets using differing techniques
a registered investment company that invests all, or substantially all, of its assets in underlying hedge funds
A diversified portfolio of generally uncorrelated hedge funds, which provides access to a broad range of investment styles, strategies and hedge fund managers in one investment vehicle. This portfolio seeks to deliver more consistent absolute returns than stock portfolios, mutual funds or individual hedge funds.
A hedge fund which invests in other hedge funds. Just as a hedge fund invests in a number of different securities, a fund of funds holds shares of many different hedge funds. These funds were designed to achieve even greater diversification than traditional hedge funds.
A fund of funds invests in a number of hedge funds and hedge fund strategies that generally are uncorrelated to each other. Generally, a fund of hedge funds will have at least 20 separate funds under its umbrella of investments.
A fund of hedge funds is a fund which invests in several different hedge funds to spread the risks. Funds of hedge funds select hedge fund managers and construct portfolios based upon those selections. The fund of hedge funds is responsible for hiring and firing the managers in the fund.