Hedge fund managers invest in securities. Hedge fund of funds managers invest in people. Somewhere in between are multi-manager hedge funds, in which a senior management team allocates capital to internal portfolio managers, monitors firm-wide risk and centralizes back-office functions. Multi-manager funds are growing quickly, especially relative to conventionally run hedge fund groups. The ten largest multi-manager funds had AUM of $100 billion as of mid-2013, reflecting net inflows of $15 billion since the beginning of 2009. The ten largest conventionally run hedge funds had $140 billion in AUM as of mid-2013, reflecting net outflows of $28 billion since the beginning of 2009. To give our subscribers greater insight into what multi-manager hedge funds are, how they are structured and how they operate, the Hedge Fund Law Report recently conducted an interview with Tomas Kmetko, a research consultant at Cambridge Associates. Our interview covered, among other topics: the difference between multi-manager funds and funds of funds; legal entity and fee structuring; design of compensation mechanisms; risk management and mitigation in the multi-manager format; allocation of responsibility for legal, compliance, technology and similar functions; marketing of multi-manager funds; comparing performance of multi-manager funds with traditional hedge funds; and talent management considerations.