The article compares different types of investment funds to see how they perform and the risks involved. Funds of funds spread out the risk by investing in many different hedge funds, reducing the chance of losing a lot of money if one fund fails. This makes them a good option for small investors or those who don't want to pick individual hedge funds. Single-manager hedge funds, on the other hand, put all the risk on one manager and strategy, which can be risky if the manager is dishonest or unskilled. By spreading out the risk, funds of funds can help protect investors from big losses.