Hedge funds remain hesitant to enter retail sector

Reluctant retail offering


Despite some retail investors seeking the less volatile and more stable returns that many hedge funds offer, the industry remains hesitant to court them. Advisers to retail investors say some hedge fund strategies are too complex, some clients too unsophisticated, and the risks of mis-selling too great to steer low-end investors towards products such as Ucits hedge funds. Managers generally agree, adding that retail distribution can be too great a challenge for many management houses.

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