A question of performance

Do funds of hedge funds (FoHFs) really produce returns that are not correlated to the performance of equity and bond markets, as so many providers claim? That was one of the central questions raised at the recent Conjecture debate, which included Credit Agricole's Teun Johnson, Jupiter's John Chatfeild-Roberts and Luca Roberi of Pioneer Alternative Investments on the panel. Evidence produced by Chatfeild-Roberts suggested the general level of correlation between hedge funds and world equity markets was high, but all three panelists felt they were exceptions to this rule. They also tackl...