Tailor-made money makers

structured products

The increasing importance of hedge funds is well illustrated by the dramatic growth in assets over the past 10 years. Based on the TASS Database, in 2004 hedge fund assets under management exceeded $1 trillion with $200bn of that being raised in 2004 alone.

Hedge funds started off as exclusively high-risk/high-return products. As the size of the hedge fund market increased rapidly, investors' modelling of the risk/reward relationship became preoccupied with risk assessed in terms of the diver

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