Opinion

Surviving funds of funds are like finely-tuned cricket bats

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Funds of funds are now offering customisation services to investors that have realised that DIY hedge fund portfolio construction might be cheaper, but is not always better

By Niki Natarajan

We live in a DIY age of Home Depot and B&Q and yet kitchens and bathrooms that are crafted by an expert typically last longer, cause less stress to the family and work just that much better. There is, of course, a cost for expertise.

But, as IKEA now offers professionals to fit the kitchens bought in the store, so too are funds of funds offering customisation services to investors that have realised that DIY hedge fund portfolio construction might be cheaper, but is not always better.