Manager of Managers Fund

A manager of managers fund is a type of investment fund that hires multiple external fund managers, each specializing in different asset classes or strategies, to manage portions of the overall portfolio. The primary fund manager oversees the allocation of assets across these external managers. This approach allows for diversification and the utilization of specialized expertise in different areas of the market. The goal is to achieve better risk-adjusted returns by leveraging the strengths of multiple managers.

Example

An investor puts money into a manager of managers fund, where different managers are responsible for equities, bonds, and alternative investments, with the overall fund manager ensuring proper allocation.