Funds of hedge funds retool in bid for survival

Funds of hedge funds are being seen as a broken model, with years of relatively low returns diminishing investors’ appetite for paying additional fees on top of that charged by traditional alternatives managers. However, survivors of the post-financial crisis wave of consolidations say they can see a brighter future ahead. “Post-crisis, the move towards going it alone has begun to fade,” said Ray Nolte, co-managing partner and chief investment officer of $13.4 billion AUM fund o…