As the mergers and acquisitions in the funds of hedge funds space accelerate the question is, how small is too small to run a fund of hedge fund business and what are the options to grow assets other than M&A?
It seems that many smaller FoHFs with less than $1 billion in assets are opting to take the bespoke account route rather than be merged into larger entities as part of a land grab for assets. By taking the bespoke route, the groups continue to manage money, select managers and aim to produce performance.
Part of the reason for this happening is the post-2008 environment, which changed the landscape significantly for FoHFs.
The latest firm to take this route...