By Niki Natarajan
As more and more
investors are thinking that investing directly will save them
money, few stop to consider the true value of their investment
of time and energy: is it really worth it? Funds of hedge funds
continue to get bad press but what few of the nay sayers fail
to recognise is that what the good ones offer just in terms of
due diligence – if you were to break it down into cost
per hour – would be a bargain.
Eighteen months ago professional due diligence was estimated
to cost between $50,000 and $100,000 per manager, and now that
more and more time is being spent on due diligence and follow
up due diligence post the initial investments, these costs are
unlikely to fall.
There is an alarming trend, however, which some of the best
fund of hedge funds managers are starting to find;