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2 years, 10 months ago via Twitter

How do you define Fund of Funds ("FoF")?

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nickunderscore | 2 years, 10 months ago view on twitter
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A fund of funds is a fund or financial entity which solely invests in other funds. For example a private equity fund of funds is a fund which only invests in other private equity funds, not in any direct private equity investments. The fund of funds does not expose itself to a direct investment risk but only to the competency of another fund it invests in. This could also be done by a hedge fund although most hedge funds hold direct positions in stocks or options or they hold a mix of direct investments and other funds.

Hope that helps, to see a fund of funds you can look at Absolute Private Equity which is a fund by Absolute Investment Services from Switzerland.

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