Hedge Funds Move Upmarket

Report from Reuters: "The minimum net worth an investor must possess to be allowed to invest in hedge funds would more than double to $2.5 million in investments, excluding a personal residence, under a measure proposed by the U.S. Securities and Exchange Commission on Wednesday."

Will the higher minimum actually enhance hedge-fund ownership as a status symbol?

Wonder if the higher minimum will apply to Goldman Sachs’ new "virtual" fund of hedge funds? The firm's Absolute Return Tracker Index aims to replicate hedge fund returns for an annual fee of 1.01%. According to the chatter on CNBC, private bankers should be salivating at the chance to package the ART index.

In any case, hedge funds continue to grab the public fancy. Why else would John Wiley & Sons have published "Hedge Funds for Dummies"?

You and your not-dumb clients will find a decent briefing on the subject here, written by Lord William Rees-Mogg, the former editor-in-chief of The Times.