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The recent announcement that the Financial Services Authority is considering paving the way for private investors to access hedge funds marks another step-change in how they can organise their portfolios.
The idea is that funds-of-hedge funds will become accessible via unit trusts, even though they can already be accessed through structured products, or investment trusts. The move coincides with an announcement in the US that some large investment banks are looking to replicate hedge funds for the private investor - but without the standard fees, which are, typically, 2 per cent of assets and 20 per cent of profits.
Until now, it has only been ...
Source: HighBeam Research, The long and the short of it.