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Fund of funds

A fund investing in other funds rather than directly in assets. Professional selectors, institutional ticket sizes, and often an explicit mandate to find managers early.

Fund of funds — A fund investing in other funds rather than directly in assets. Professional selectors, institutional ticket sizes, and often an explicit mandate to find managers early.

Fund of funds occupy a distinctive niche because finding good managers before everyone else does is their actual product — which is precisely why several run explicit emerging-manager or seeding programs that mainstream institutional allocators generally do not.

Frequently asked questions

Do fund of funds charge higher total fees?

Yes — investors pay the underlying managers' fees plus the fund of funds' own fee, sometimes called a double layer of fees, which is the standard trade-off for the manager-selection service.

Are fund of funds a good fit for a first-time manager?

Often yes — many run dedicated emerging-manager programs specifically because finding strong managers early, before they're widely available, is central to their own value proposition.

Nothing on this page is legal, tax, or investment advice. SeRuM is not a registered broker-dealer, not a placement agent, and not an investment adviser.

AllocatorAn institution or individual that allocates capital to external managers — pensions, endow Co-investmentDirect investment alongside a fund into a specific deal, usually with reduced or no fees.

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