INVESTMENTS 投资学 （博迪BODIE, KANE, MARCUS）Chap026 Hedge Funds_精品.pptVIP

26-* Funds of Funds Optionality can have a big impact on expected fees. Fund of funds pays an incentive fee to each underlying fund that outperforms its benchmark even if the aggregate performance is poor. Diversification can actually hurt the investor in this case. 26-* Funds of Funds Spread risk across several different funds Investors need to be aware that these funds of funds operate with considerable leverage. If the various hedge funds in which these funds of funds invest have similar investment styles, diversification may illusory. 26-* Example 26.6 Incentive Fees in Funds of Funds