Fund of fund managers still in demand

Funds of hedge funds may have attracted bad press at the end of last year due to their relatively high fees, but recruiters say there is still plenty of hiring in the sector.

"We still have plenty of mandates from funds of hedge funds," says David Durham, managing director of Durham Consulting. "The sector remains healthy. Last year was poor only because the returns generated by hedge funds were poor."

Fund of funds have been slated for charging management fees of 1% and performance fees of 10% in addition to the fees charged by hedge funds. However, when funds generate strong returns, Durham says the higher fees are less of a problem.

According the website www.globalmoneymanagement.com, fund of funds boutique London & Capital is among those hiring new managers. The site reports that the boutique is searching for a senior equity fund of funds manager and a fund of hedge funds analyst. Alan Easter, marketing head at the fund, is reported as saying institutional investors' demand for fund of funds products is rising.