Is Oscar Shafer's Opinion Of Funds Of Funds Fair?

oscar schafer

Fund of funds sometimes get disparaged for things like not creating value, just being middlemen, things like that.

But obviously its a business model that’s working, or else it wouldn’t exist, right? Well, another example of hating on fund of funds popped up today, in a collection of quotes from hedge fund managers at the annual GAIM conference.

Oscar Schafer, a managing partner at OSS Capital Management, is quoted saying, “I’m not a fan of funds of funds because they can’t control their liquidity.” 

Interesting. A new argument against fund of funds that we haven’t heard yet. Does he have a point? We weren’t so sure, so we checked with someone at a fund of funds.

“He’s just pissed because his performance sucked so [we all] pulled from him.”

Needless to say, we aren’t so sure that his opinion is objective. But to be fair, we also aren’t sure that our source’s opinion is objective, or what Schafer’s returns are like. 

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