The Financial Times reported yesterday ("Calpers takes axe to costly private equity managers" - subscription required) that CalPERS is planning to cut back on the number of private equity managers by more than two thirds in order to invest more money with fewer managers as a way to reduce costs. In the article, funds-of-funds were specifically identified as a likely initial casualty of the policy, as funds-of-funds are "criticised for adding an extra layer of fees while outperforming the wider industry."
As a fund-of-funds manager, I believe that funds-of-funds can add value to a portfolio in a number of situations - but that's the subject of a future post....
Link (subscription required): http://www.ft.com/intl/cms/s/0/af4fff4e-9fe6-11e4-9a74-00144feab7de.html?siteedition=intl#axzz3PPG23Vb2
As a fund-of-funds manager, I believe that funds-of-funds can add value to a portfolio in a number of situations - but that's the subject of a future post....
Link (subscription required): http://www.ft.com/intl/cms/s/0/af4fff4e-9fe6-11e4-9a74-00144feab7de.html?siteedition=intl#axzz3PPG23Vb2
