Funds of Funds.

Interesting read in the Financial Times on Fund of Funds for Hedge funds.  These are the guys that normally take your money and allocate it amongst different hedge funds, usually charging a hefty fee {something like an additional 2% management fee and 20% of the profits} on top of what the hedge funds charge.  Those fees are usually the same, so in effect if you use one of these guys, you're cumulatively paying 4% management fees and up to 40% of your profits!  That's good work if you can get it!  Anyway, seems their performance is nothing to write home about.   According to the Financial Times, "$100 invested at the beginning of 2008 would be worth $96 today.  By comparison money invested in most major indices would currently be in the black and the average hedge fund manager would have turned that $100 into $114".  

Anyway if this sort of thing interests you go read the whole thing here:  Financial Times:  Funds of Hedge Funds Recast Dismal Model.