Fund of funds

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A fund of funds is an investment vehicle whose holdings consist of shares in hedge funds and private-equity funds. Some of these multi-manager vehicles limit their holdings to specific managers or investment strategies; others are more diversified. Investors in funds of funds are willing to pay two sets of fees, one to the fund-of-funds manager and another set of (usually higher) fees to the managers of the underlying funds.^[1]

References

1. ↑ "Hedge Fund Glossary ”. Hedge Fund Lounge. Retrieved on Feb. 17, 2008.