Funds of Hedge Funds (FHF) are perceived to be the premier choice of institutional investorsfor first-time allocations into the alternative investment asset class. While many papers coverthe bright side of FHF investing, we in this paper empirically investigate the maximum drawdownsof FHF....

Most research on the performance and risk of hedge funds are based on calculations that justuse the data from one index provider. Also most product providers and even more and moreinvestors are using hedge fund indices for benchmarking purposes. As some academic articlespointed out, the world of...