Single-Strategy Funds of Funds on the Radar
Investor interest in funds of hedge funds has seen a resurgence in recent weeks as the shake out in the hedge fund industry continues, and managers are offering more transparency and more favorable liquidity terms. Investors have shown particular interest in specialized funds of funds that are performing well, such as commodities, global macro, and long/short equity.
For example, a family office based in Eastern Europe is seeking opportunities in single-strategy funds of funds, and is currently researching CTA/managed futures funds. Additional interests include global macro and other short-term trading-oriented strategies. Another example is a wealth advisor based in Belgium. The firm is currently looking for a fund of hedge funds focused on commodities.
After a year of poor performance, investors were wary of investing in funds of hedge funds. Managers have begun adjusting to investor demands, however, which was the impetus many investors needed to allocate once again to funds of hedge funds.