Fees on Fees in Funds of Funds

Stephen Brown (), William Goetzmann and Bing Liang

Yale School of Management Working Papers from Yale School of Management

Abstract: Funds of funds are an increasingly popular avenue for hedge fund investment. Despite the increasing interest in hedge funds as an alternative asset class, the high degree of fund specific risk and the lack of transparency may give fiduciaries pause. In addition, many of the most attractive hedge funds are closed to new investment. Funds of funds resolve these issues by providing investors with diversification across manager styles and professional oversight of fund operations that can provide the necessary degree of due diligence. In addition, many such funds hold shares in hedge funds otherwise closed to new investment allowing smaller investors access to the most sought-after managers. However the diversification, oversight and access comes at the cost of a multiplication of the fees paid by the investor. One would expect that the information advantage of funds would more than compensate investors for these fees. Unfortunately, individual hedge fund

Date: 2002-10-01, Revised 2009-09-01
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://repec.som.yale.edu/icfpub/publications/2666.pdf (application/pdf)

Related works:
Working Paper: Fees on Fees in Funds of Funds (2009)
Chapter: FEES ON FEES IN FUNDS OF FUNDS (2005)
Working Paper: Fees on Fees in Funds of Funds (2004)
Working Paper: Fees on Fees in Funds of Funds (2003)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ysm:wpaper:ysm309

Access Statistics for this paper

More papers in Yale School of Management Working Papers from Yale School of Management Contact information at EDIRC.
Bibliographic data for series maintained by ().