With many investors reporting to Preqin that hedge funds are not meeting their expectations, we take a closer look at the challenges of effective portfolio construction. Building a balanced portfolio of hedge funds that meets an investor’s long-term objectives is one of the leading challenges faced by institutions when accessing the hedge fund industry today. With more than 15,000 hedge funds currently open to investment, 42% of investors interviewed by Preqin at the end of 2016 found sourcing attractive hedge fund investment opportunities more difficult than the previous year.