"For funds of funds to succeed they are going to have to change the way they do business," particularly if they are to attract money from larger investors, believes Brian Altenburg, a managing director in alternative investment asset management at Bank of America. This evolution is likely to focus more on valuable transparency, managed accounts and strategy-specific funds. Established managers that manage to do this will take more market share "than those who just keep business as usual," said Altenburg.
Part of the problem is that larger investors such as pension plans are increasingly switching...
This article was originally published in Alternative Investment News.