Investors who want to diversify into the hedge fund universe but have constraints on how they do it, can find a solution through structured products. These vehicles offer a way to access hedge funds that may be off limits to direct investment.
A hedge fund structured product can appeal to investors with little appetite for risk or who face legal, tax or compliance constraints. They can also provide investors with a regular income.
Eric Personne, head of fund derivatives in EMEA at Merrill Lynch,