Fund of funds
InvestingDefinition
Investment vehicle that holds positions in multiple hedge funds, PE funds, or VC funds. Provides diversification and access for smaller investors but adds a fee layer (typically 1% + 10% carry on top of underlying fund fees).
The "double-fee" drag has crushed FoF performance — most FoFs have been winding down since 2010. Lives on in retail-friendly multi-strategy products.
The "double-fee" drag has crushed FoF performance — most FoFs have been winding down since 2010. Lives on in retail-friendly multi-strategy products.