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Hedge Fund of Funds Investing: An Investor's Guide by Joseph G. Nicholas

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A FUND OF FUNDS (FOF) is a fund whose investment strategy is to allocate capital to two or more hedge funds. Investors purchase an interest in a fund of funds, and their assets are commingled with those of other investors. This pool of money is invested with a number of hedge funds. The basic structure is diagramed in Figure ...

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