Growing influence of multi-managers

Fund of fund managers are becoming increasingly influential in the way hedge fund managers run their portfolios, according to David Smith, chief investment director at multi-manager group GAM. In an address to delegates at the recent Alternative Investment Summit in London, Smith said the increasing rise of funds of hedge funds and the dominance of a few top players in that arena could lead hedge funds to take on more risk to generate returns for fund of funds investors. There are around 600 funds of hedge funds managed by around 200 companies and the market has seen massive growth in r...