The Dallas Morning News – Hedge fund investors aren’t your typical investors.
In fact, you need to qualify as an “accredited investor” before you’re able to invest in many funds of hedge funds – investment companies that invest in hedge funds.
You must have a net worth of at least $1 million or $200,000 in annual income.
But smaller investors are being more exposed to hedge funds in other ways, and that’s got securities regulators concerned.
“This is not investing for novices,” said Robert Plaze, associate director of the Securities and Exchange Commission’s Division of Investment Management.
“They’re not for the typical investor.”
On Tuesday, the North American Securities Administrators Association – the umbrella group for state securities regulators – will hold a forum in New York on hedge funds.
