NEW YORK (CNN/Money) – While becoming a successful hedge fund manager in the United States is tough, virtually anyone can give it a shot, provided they’ve got a handful of startup capital and a Bloomberg terminal.
That ease of entry to the industry is one of the reasons hedge fund fraud takes place in the U.S. but is virtually nonexistent in Europe, according to the Alternative Investment Management Association (AIMA), an industry group based in London.
Hedge funds are private investment pools that cater to wealthy individuals or institutions such as banks, university endowments or pension funds. Ordinary investors who have money in pensions are exposed to hedge funds if their pension plan invests.
The Financial Services Authority, England’s answer to the Securities and Exchange Commission, requires managers to meet thresholds before starting a hedge fund that U.S. regulators do not require, Florence Lombard, AIMA’s executive director, said in a panel discussion Wednesday.
