Fund of funds: Vol of vols

Hedge funds are often blamed for selling «good» assets to cut borrowing and compensate for losses on «bad» ones. Now it seems that their critics could be just shooting the messenger. Funds of hedge funds, the gatekeepers through which most hedge fund investments are made, may have forced them to sell during the volatile summer months. Funds-of-funds account for more than 60% of the $1.9 trillion in hedge fund assets, according to new research from TrimTabs and BarclayHedge. On average they borr...