A Cancer on the Investment World

Yale's David Swensen, interviewed by The Wall Street Journal:

Fund of funds are a cancer on the institutional-investor world. They facilitate the flow of ignorant capital. If an investor can't make an intelligent decision about picking [hedge fund] managers, how can he make an intelligent decision about picking a fund-of-funds manager who will be selecting hedge funds?

Investors who were "Madoffed" by their fund of funds are already pondering that question.