Hedge Fund Of Funds

A fund of funds is a type of alternative investment vehicle that works to pursue an "absolute return" strategy in an inherently volatile market. By combining a number of funds into one portfolio, a fund of funds maximizes investors' chances of reaping the benefits of non-correlating hedge funds. While hedge funds are themselves designed to profit in a fluctuating market, a fund of funds reduces risk by diversifying an investor's fund portfolio and employing the talents of a number of different fund managers.

Funds of funds are profitable regardless of market direction because their success relies less on the direction of the market than on the talent of a wide array of fund managers who have proven themselves in all market conditions. Furthermore, by diversifying across geographic, sector, and strategic lines, funds of funds systematically reduce investors' exposure to the volatility that might naturally occur within those lines. PDP Capital understands that a diversified portfolio is the most reliable way to protect your investments, and believes that the most effective strategy is to diversify the portfolio with a collection of non-correlating money managers.

Benefiting from PDP Capital

One of the primary differences you will recognize between a fund of funds and traditional money management is the fee structure. Unlike mutual fund managers, who rely largely on asset-based fees, fund of funds managers rely to a far greater extent upon performance or incentive fees. By tying managers' success to investors' success in this manner, such funds provide investors the peace of mind that comes from knowing that managers are personally incentivized to see the investments succeed. In addition, PDP Capital also utilizes a high-water mark that specifies that if an individual manager does incur a net loss in a given year, that manager must recover the loss before a performance fee is earned. This fee structure is an added incentive for doing business with PDP Capital.

PDP Capital is a name you can trust. Their team of investment professionals is dedicated to providing you with long-short equity fund of fund investments on a global level. Visit PDP Capital today and begin experiencing the benefits that PDP Capital Investments can bring to the overall performance of your portfolio.