President's Blog

The State of the Fund of Funds Industry

May 1, 2011
post contributed by Megan Flynn

There are many people that still need some kind of exposure to alternative investments, Anthony Scaramucci said. The hedge fund industry attracts impressive talent because of the fee structure, and that tremendous talent coupled with the extraordinary due diligence Fund of Funds can provide is going to take the industry to the next level according to Scaramucci.

New York Hedge Fund Roundtable members gathered to discuss the current state of the Fund of Fund industry with Mr. Scaramucci of SkyBridge Capital in April. The presentation was a sound combination of FOF industry projection and insight into the mind of a successful peer. He was proud of where he came from and credited many of his achievements to his personal life experiences.

Like the events that shaped his life, Scaramucci explained how the FOF industry also maintains unique characteristics that make it a necessary and underutilized player in the market. One of the major distinctions the FOF industry has is the due diligence it has the ability to provide.

The story Scaramucci recalled of a money manager he was successfully able to vet was disturbing. It’s alarming thinking there could be more Madoff's and that what has transpired has not effectively exposed all fraud in the market. But according to Anthony Scaramucci, the demand for sound high yield investments is creating huge opportunity for the due diligence expertise provided by the fund of fund industry.

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