The case for investing in Fund of Funds
By Andrew Ludwig
The pandemic and resultant market roller coaster was a red flag for risk-averse investors who do not cope well with extreme market volatility, a hallmark of most of 2020. We recently interviewed the fund managers at New Road Capital and Flagship Asset Management to discuss the Fund of Funds investment approach, a strategy that has been shunned for its fees, but should not be forgotten for its intended purpose of diversification.
A Fund of Funds, also referred to as a multi-manager investment, is a pooled investment fund that invests in other funds, typically other mutual funds. The portfolio essentially contains different underlying portfolios of other funds affording greater diversity and reduced risk.
SaltLight Capital’s Q1 2021 Investor Letter
SaltLight Capital Management, an investment management firm, published its first quarter 2021 investor letter – a copy of which can be downloaded here. A fairly robust performance from the SaltLight SNN Worldwide Flexible Fund during the first quarter of 2021 as conditions for equities were rather favorable. You can view the fund’s top 5 holdings to have a peek at their top bets for 2021.
Published on June 2, 2021 at 12:05 pm by Inan Dogan, PhD
Warren Buffett never mentions this but he is one of the first hedge fund managers who unlocked the secrets of successful stock market investing. He launched his hedge fund in 1956 with $105,100 in seed capital. Back then they weren’t called hedge funds, they were called “partnerships”. Warren Buffett took 25% of all returns in excess of 6 percent.