choices ahead, page-16

hopefully it provides a better price outcome.

two general points to be wary of:
1. what discount (if any) will be applied to NAV on exit?
2. how frequently will redemptions be allowed?

The structure of FoFs dont always make unit holder redemptions easy. Maybe the manager could hold a larger cash position to cover this. Lock-ins, early exit fees, limited capacity, personal relations, etc typically contribute to the illiquidity of hedge funds and hence FoFs.