The retail debate

There is little support from both the long-only and alternative community to open up hedge funds to the retail market. But whose interests are the detractors looking out for?

The suitability of hedge funds for retail investors remains in doubt, despite growing awareness in alternatives from the public and the potential for products to be structured for less wealthy customers.

There is little argument from traditional fund managers that poor returns would benefit from the potential diversification hedge funds offer, but alternative investments are also seen as a threat to established players, who fear increased competition should the asset class ever win approval