Funds of hedge funds: Mix and match hedge funds and other pooled investment vehicles. Blend of different strategies and asset classes aims to provide stable long-term return than any of the individual funds. Returns, risk, and volatility can be controlled Capital preservation is generally important Volatility depends on the mix and ratio of strategies employed Expected Volatility: Low – Moderate – High Emerging Markets: Invests in equity or debt of emerging (less mature) markets that tend to have higher inflation and volatile growth. Short selling is not permitted in many emerging markets, and, therefore, effective hedging is often not available Expected Volatility: Very High