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A tough nut to crack

Legal impediments and excessive taxation have stunted the German hedge fund market. If these are eased there should be massive growth

Extremely high tax rates and a large number of regulatory hurdles have stifled the production and consumption of hedge funds by Germany's financial services and investment community. But these same barriers also mean an industry has developed that offers innovative structures for indirect access to alternative investments.

Lawyers and tax advisers consulting alternative product providers

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