The alternative investment industry includes hedge funds, funds of hedge funds, managed futures funds and other non-traditional asset classes. The industry is supported by a wide range of service providers including accountants, administrators, attorneys, bankers, brokers, consultants, exchanges, prime brokers, technology and data providers and third-party marketers.
Hedge funds are private investment pools generally limited to high net worth individuals and institutional investors. Retail investors are not suitable investors under the current statutory and regulatory framework.
Alternative investment managers are distinguished by an objective to deliver absolute returns. Using strategy-driven investment methodologies, alternative managers aim to provide broad diversification benefits such as lowered volatility (risk) and the potential for improved performance. With the distinct advantage of using short positions as well as long positions in the markets, their investment techniques have proven advantageous to their investors and to the capital markets.
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