The advantages of fund of hedge funds

Fund of funds, also known as a multi-manager investment, is an alternative investment strategy wherein a fund is put in another type of funds. Instead of investing directly in investment vehicles, funds are invested in a portfolio or partnerships that already contain underlying assets. One scheme of this investment strategy is fund of hedge funds.

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Hedge fund investment, which Scott Tominaga has years of experience managing, has proven to be profitable for so many investors. Investing in fund of hedge funds also offers some benefits, such as the following:

Diversification: Every adept investment manager would concur that for a portfolio to be able to yield maximum possible returns and minimize exposure to risks and a single fund manager, it has to be as strategically diverse as possible. By putting in money in fund of hedge funds, an investor can get a piece of returns from all of the underlying assets and funds and gain exposure to an alternative asset type that does not compromise the overall portfolio structure.

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Outsourcing of manager talent: Not everyone is equipped with the know-how and expertise requisite to investing. This is a reason PartnersAdmin LLC, of which Scott Tominaga is the Chief Operating Officer, offers a plethora of financial services to its clients. By investing in fund of hedge funds, it entails outsourcing the decision-making to the manager, who typically has the resources, experience, methods, network, and effective due diligence in handling this investment strategy.

Learn more about investment in hedge funds by following this Scott Tominaga Twitter page.

What does a hedge fund manager do?

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In general terms, a fund manager is a financial expert responsible for handling the funds they supervise, in such a way that such supervision is in keeping with set goals and maximized returns for the benefit of investors, says financial expert Scott Tominaga of Partners Admin LLC. Those who are seasoned players in the industry and experienced at different levels of the fund management ladder will often secure senior positions in companies.


Hedge fund managers are in charge of both long-term and day-to-day operations of funds. The overall work entails doing a variety of tasks, from balancing portfolios and marketing funds to prospective investors to creating ethical business standards and implementing office policies and procedures.

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Of course, a crucial part of the challenge of the job is to seek out investors. As soon as investors come in, the hedge fund manager must ensure that any investment decision is made with the fund pool in mind. They spend their workday researching and studying the financial market and making investment plans, looking for various other investment opportunities, analyzing trends both in the media and the stock market, and networking with other businesses.

Most hedge fund managers begin as analysts then get promoted to senior analysts before becoming a full-fledged portfolio manager. Once they have fully secured their place in a company, continuous engagement is key, from creating their own team of buy-side analysts and managers to taking charge of generating senior-level investment ideas, explains Scott Tominaga.

PartnersAdmin LLC’s Chief Operating Officer Scott Tominaga has played primary roles in the establishment of several operational infrastructures, successfully interfacing with fund managers and professional service providers to establish efficient and transparent operations and reporting structures. Visit this blog for related posts.