Britain’s market regulator plans to open hedge fund investing to all individuals in the U.K., allowing the general public to participate in one of the fastest- growing segments of the money-management industry.<\/p>\n
The Financial Services Authority proposals would let consumers put money into funds that invest in hedge funds, investments previously reserved for the wealthy, the London-based watchdog said today. The change will enable people to diversify their risk and better manage their savings, the FSA said.<\/p>\n
Investors poured a record $126.5 billion into hedge funds last year, more than double the previous year’s total, pushing the industry’s assets to $1.4 trillion, according to data compiled by Chicago-based Hedge Fund Research Inc. Hedge funds often borrow to increase their market bets, creating the potential for bigger gains or losses than traditional funds.<\/p>\n