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A manager of managers fund is a type of investment fund that hires multiple external fund managers, each specializing in different asset classes or strategies, to manage portions of the overall portfolio. The primary fund manager oversees the allocation of assets across these external managers. This approach allows for diversification and the utilization of specialized expertise in different areas of the market. The goal is to achieve better risk-adjusted returns by leveraging the strengths of multiple managers.
An investor puts money into a manager of managers fund, where different managers are responsible for equities, bonds, and alternative investments, with the overall fund manager ensuring proper allocation.
• A fund that hires multiple external fund managers to manage different portions of the portfolio.
• Offers diversification by utilizing specialized expertise across asset classes.
• The primary fund manager oversees the allocation and strategy.
The primary manager allocates assets across external fund managers, ensuring the overall strategy and portfolio objectives are met.
It provides diversification and access to specialized expertise, potentially improving risk-adjusted returns.
Multiple managers allow the fund to take advantage of specialized knowledge in different areas, enhancing portfolio performance.
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