the collapse of some very big funds-in particular, Amaranth, Bear Stearns, and Sowood-has put the fear of God into investment committees,
A drawdown is when a fund reports a decline in net asset value for a marking period.
The Achilles' heel of funds of funds may be their fee structure. Often they charge a 1 percent fixed fee and 10% of the profits. Combine that with hedge funds that are assessing 2% and 20%, and the investor has some hefty hurdle to work through.
the new hedge fund capital of the world, Greenwich, Connecticut,