Summary of Hedge Fund of Funds Investing

An Investor's Guide

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Hedge Fund of Funds Investing book summary
Funds of funds pool hedge fund investments and make them grow with diversified risk, lower transparency and higher fees.


8 Overall

9 Applicability

8 Innovation

7 Style


Joseph G. Nicholas’ book is not for the faint of heart or the light of wallet. If your idea of a strong investment is a 401K plan and a few blue chip stocks handed down from your dear departed grandmother, this probably isn’t the book for you. However, for those interested in how the very rich get very richer, as well as those charged with the weighty responsibility of protecting institutional and private assets, this book could be worth its weight in gold or stock certificates. Nicholas writes at a level that makes his information just comprehensible to those with minimal investment knowledge, while still very useful to insiders who know the menu of every deli within a two-mile radius of Wall Street. His in-depth historical analysis explains the current strong interest in hedge funds of funds investing, and his case studies will teach you the all-important matter of how to select the right fund of fund manager. strongly recommends this book to anyone who wants or needs to learn more about investing at the most elite levels.

In this summary, you will learn

  • How hedge funds of funds (FOF) differ from regular hedge funds and from mutual funds;
  • The performance record that explains investors’ growing interest; and
  • How to select a good FOF manager to shepherd your investment.


Investing WiselyImagine that you run a $200 million foundation and you’ve decided to invest about 10% of your assets, or $20 million, in hedge funds. One prudent approach is to invest in a "fund of hedge funds," which is somewhat like a mutual fund in that both represent a pooling of funds...
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About the Author

Joseph G. Nicholas, J.D., is founder and chairman of HFR Group, LLC, which has interests in asset management, fund-of-funds management, an investment advisory firm and Hedge Fund Research, Inc., a leading supplier of hedge fund data. A frequent lecturer and media expert on alternative investment topics, he is author of Investing in Hedge Funds and Market-Neutral Investing.

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