Retail distribution is dangerous for hedge fund industry, warns expert

An expansion of hedged products into the retail market could cause Europe's hedge fund industry to 'lose its way' and suffer from diminished returns, according to a hedge fund expert.

Raffaele Jerusalmi, executive director of Borsa Italiana, told the Italian stockmarket's conference in Milan in early June that the performance of Europe's hedge funds could fall if restrictions imposed to protect retail consumers restricted the funds' investment universe.

Jerusalmi attributed the Europe-wide push to