Hedge fund of funds managers don't randomly pick single-strategy hedge funds. They choose funds that are bigger, older, offshore, and have higher fees. These selected funds also have more experienced managers and better returns with less risk. The decision to include a fund is influenced by factors like past performance and fees. The higher the minimum initial investment, the more likely a fund is to be chosen, but this effect decreases over time. Different types of funds have different characteristics that affect their chances of being included in a fund of funds portfolio.