As one of the top five hedge fund investor worldwide with $30.6 billion of assets invested in hedge funds, real estate and private equity, Peter Rigg is able to offer insight into the investment process of funds of hedge funds.

In a wide-ranging interview, he gives his views about the future of fund of hedge funds (FoHFs). Rigg discusss what he believes are the unique qualities of a FoHF and how it can add value and justify its fees.

Rigg explains what kinds of funds he picks for the FoHF portfolios and the selection criteria he sues.

Ucits and regulated funds are also discussed as well as the expected impact of the European Union’s alternative investment fund managers directive on FoHFs as well as the wider hedge funds industry.

Commenting on his investor base, Rigg gives his views about operational risk, transparency and liquidity and how these issues affect not only his selection of managers but his relationship with HSBC's investors.

Rigg also reveals what he thinks are the most important criteria investors use to select a FoHF.