An investment vehicle that acts like a mutual fund of hedge funds and allows investors access to managers that may otherwise be unavailable is known as

Question

Quizplus · Accepted Answer

A fund of funds is an investment vehicle that pools money from multiple investors to invest in a variety of underlying hedge funds. This strategy is commonly used by investors who want to diversify their hedge fund exposure and gain access to a larger number of investment managers with differing strategies. Fund of funds enable investors to minimize the risk of over-concentration in any single fund or strategy, as their assets are spread across multiple funds, which in turn invest across a range of asset classes, markets, and strategies. Hence, the correct answer is C.

An Investment Vehicle That Acts Like a Mutual Fund of Hedge