Given the large number of funds, manager selection is especially important when building a portfolio.
There has been a flight of quality to the hedge fund business from the mutual fund industry.
It is Important to have a team of experienced professionals dedicated full time to the process.

Many successful hedge funds are closed to new investors to limit the size of their cap table.
As an existing investor, the Fund has an arrangement with favoured managers to reserve a certain amount of capacity.
Even if no additional capacity remains, the Fund continues to participate in the closed fund.

Selection of managers requires due diligence, risk management
and administration.
By pooling capital together, Advantage Orion distributes the cost associated with the research-intensive manager selection process.
Smaller investors benefit from a more efficient way to invest in multiple hedge funds.

Lower fees negotiated with underlying fund managers as an early investor in their funds.
Discounted fees passed on to investors resulting in
higher performance.
Minimal fee layering to ensure investors avoid paying fees on fees as in other fund of funds structures.

For investors looking to invest in hedge funds, a diversified fund-of-hedge funds is an obvious choice to reduce the risk of any specific manager or asset class.
Overseas investor access to hedge funds is typically highly restricted as hedge fund managers usually only raise capital in the United States and favor larger institutional investors.

Advantage Orion’s offshore structure enables non-US investors to enjoy tax free returns.
With the master fund also in Cayman, individual investors are not burden by US reporting requirements (e.g., FATCA).
In addition, investors can likely re-allocate within different funds without any incurring any tax obligation in the local jurisdictions.

Investing in hedge funds requires high minimum investment amounts (typically between $1 and $5 million) which are prohibitive for most investors.
By pooling capital in a Fund, and the Fund meeting the minimum investment requirement, individual investors can access the same underlying funds with a minimal investment.

By offering a fund of hedge funds, individual investors can manage the risk of owning such vehicles more easily rather than conducting individual diligence on each of the funds.
In addition, carefully analysing the correlations between funds leads to lower volatility.
Strategies include a variety of new liquid assets that provide necessary diversification.