Discuss two advantages of Hedge Fund B relative to Hedge Fund C with respect to investment characteristics.

Sushil Wallace is the chief investment officer of a large pension fund. Wallace wants to increase the pension fund’s allocation to hedge funds and recently met with three hedge fund managers. These hedge funds focus on the following strategies:
Hedge Fund A: Specialist—Follows relative value volatility arbitrage Hedge Fund B: Multi-Manager—Multi-strategy fund Hedge Fund C: Multi-Manager—Fund-of-funds