Emerging-manager mania has taken a firm foothold in the fund of
hedge funds industry as a way for multi-managers to try to
differentiate themselves from the groundswell of advisors all
aiming to assist pension funds in their direct hedge fund
Most of these advisors, which come in various formats
including consultants, do not, however, have the depth of
resources or experience to discover and discern the winners of
For this reason, they are typically focusing on allocations
to the larger brand names, leaving an open field for the
'discovery' of the future talent. But what a few investors
realise is that while many of the funds of funds are in the
throes of re-inventing themselves as emerging-manager experts,
few have a proven track record in this discipline.
HSBC Alternative Investments Limited (HAIL), which has been
managing funds of hedge funds portfolios for more than...