TY - JOUR T1 - Diversification Strategies and the Performance<br/>of Funds of Hedge Funds JF - The Journal of Alternative Investments SP - 75 LP - 85 DO - 10.3905/jai.2012.15.2.075 VL - 15 IS - 2 AU - Na Dai AU - Hany A. Shawky Y1 - 2012/09/30 UR - https://pm-research.com/content/15/2/75.abstract N2 - Funds of hedge funds are diversified investment vehicles that provide investors with diversification either across managers within a specific hedge fund strategy or across a wide range of hedge fund strategies. In this article, the authors contrast the performance of funds of hedge funds that diversify across managers (but stay within a single hedge fund strategy) versus those that diversify across managers and hedge fund strategies. Their empirical results provide strong evidence in favor of the latter. Funds of hedge funds that diversify across both managers and strategies outperform those funds that diversify across managers but stay within a single hedge fund strategy.TOPICS: Real assets/alternative investments/private equity, portfolio construction, performance measurement ER -