Funds of funds: have they been 'misunderestimated'?


By Neil Wilson

Hedge funds have faced a lot of criticism over the past year - as many have struggled to cope with the global financial crisis. Not all of the criticism has been deserved, but we all know it has been a difficult time and that conditions continue to be very challenging.

The fund-of-funds sector has had arguably the most opprobrium heaped upon it during this tumultuous period. Although the mean returns from the single-manager universe were deeply disappointing, coming in at around -15% last year, the InvestHedge Composite shows that the median for funds of funds - after