单选题

Which of the following statements is least likely an advantage of investing in hedge funds through a fund of funds? Funds of funds provide:

A、 an increase in expected return through diversification.
B、 expertise in selecting funds and conducting due diligence.
C、 access to successful funds that may otherwise be closed to new investors.

【正确答案】 A

【答案解析】

A is correct because diversification results in risk reduction, not return enhancement. Further, the fees charged by the fund of funds manager will likely reduce returns relative to direct hedge fund investment.