FundFire's headline (which you won't see, it's a paywalled site) tells the story: Wirehouse Advisors Drop Hedge Fund of Funds. Hedge funds of funds, or HFOFs, came into fashion in the middle of the last decade. At that time, hedge funds had terrific track records, as most of them had dodged the 2000-02 technology stock crash. They were dangerous to buy individually, though, because of their investment leverage and their risk of fraud. Thus, the vehicle of choice for institutions and high-net-worth investors became the HFOF, which promised not only to find the best hedge fund managers but also to weed out the frauds.