Discussion Questions and Problems
1. What are the pros and cons of a multistrategy versus a single-strategy hedge fund?
2. What are the pros and cons of a fund of hedge funds versus a multistrategy fund?
3. What are the pros and cons of a replication product versus either a multistrategy fund or a fund of hedge funds?
4. What type of investor might be attracted to multistrategy, fund of funds, or replication products?
5. How has multistrategy fund performance compared to fund of fund performance? Why might they be different?
6. Who are the largest FoF operators today?
7. Who are the largest multistrategy funds today?
8. What would be the likely difference in total numbers of head count and expenses required to run a $10 billion multistrategy fund versus a $10 billion FoF?
9. What roles might be different or how might head count be deployed differently between the two organizations?
10. How have investor preferences between single strategy funds, multistrategy funds, and FoFs evolved over time and where do they stand today?
11. What factors have influenced investor choices of multistrategy funds or FoFs since 2008?
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