Economics, Econometrics and Finance
4 years ago

Funds-of-Funds Proven to Justify Fees-on-Fees with Asset Allocation Analysis.

National Bureau of Economic Research
Do Funds-of-Funds Deserve Their Fees-on-Fees?
Andrew Ang, Matthew Rhodes‐Kropf, Rui Zhao

Paper Summary

Funds-of-funds are often criticized for having lower returns than hedge funds, but this study suggests they should be compared to a different benchmark. By analyzing the characteristics of this benchmark, researchers found that, on average, funds-of-funds do provide value for their fees-on-fees.

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