Most FOHFs failing absolute return targets

“In theory, FOHFs are supposed to make money in all market conditions; in reality their performance tends to suffer when equity markets are falling, albeit to a lesser degree,” says fund analyst and sector head Randal Goldsmith, in his latest review of FOHFs. In light of this and given the increasing dependence of funds-of-hedge-funds (FOHFs) on market conditions, S&P Capital IQ Fund Research says it plans to pay more attention to their returns relative to comparable peers and less to performance versus absolute return targets.   “If we had continued to focus on performance versus abso...