Performance of, and net inflows to, hedge funds of funds have suffered since the financial crisis.
Alpha dries up
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A recent academic study of hedge funds of funds’ perform-
ance during three distinct periods around the crisis found that they were able to produce alpha that was statistically different from zero only during the pre-crisis period.
Credit/Source: “Funds of hedge funds: performance, risk and capital formation 2005 to 2010”