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What is a fund of hedge funds? How is it different from a single hedge fund?

April 26, 2017different fund funds hedge

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What is a fund of hedge funds? How is it different from a single hedge fund?

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A fund of hedge funds is a fund comprising a group of single hedge funds, usually 10-15. This grouping of different hedge funds makes the longer term results more positive in return, and safer over time. This dividing of the risk from one single hedge fund spread across a group is known as diversification.