As investors pause to re-evaluate the fund of fund approach to hedge fund investing, this paper draws support from NEPC’s experience working with FOHFs and institutional investors as well as applied research in the field, to examine a host of issues in evaluating FOHFs. Our research suggests that when evaluating FOHFs, the focus should be on testing the portfolio construction capabilities of a FOHF provider, which is the essence of its potential value-creation. We further conclude that that only a minority of FOHFs have consistently added value. Such value-creating FOHFs can continue to play an important role in institutional investment programs of investors who remain either resource and/or skill constrained to build a portfolio of individual hedge funds. By adopting a holistic approach—as demonstrated by NEPC Hedge Fund Research’s 6P due diligence process—investors can identify such value-creating FOHFs as key building blocks for their long-term investment programs.