Help us end the fiscal year strong. Donate by June 30. Give Now

Accessible hedge funds are here

Ashley Milne-Tyte Jul 24, 2006
HTML EMBED:
COPY

Accessible hedge funds are here

Ashley Milne-Tyte Jul 24, 2006
HTML EMBED:
COPY

TEXT OF STORY

SCOTT JAGOW: Today, a giant investment group that invests in hedge funds began trading publicly on the London Stock Exchange. It’s a rare opportunity for small investors who usually can’t afford hedge funds. Ashley Milne-Tyte reports.

ASHLEY MILNE-TYTE: Generally to invest in a hedge fund, you need a cool half million dollars at your disposal. And your money’s tied up for at least a year.

With today’s public offering, small investors can buy in to as many as 35 different hedge funds for the price of a single share of Swiss-based CMA Global Hedge. With no time commitment.

Charles Gradante of the Hennessee Group says offering the regular investor a bite of the hedge find pie is a good idea.

CHARLES GRADANTE:“Provided they are educated in the risks associated with hedge funds, who may use leverage and may short stocks and things like that.”

Hedge funds raked in $42.1 billion in the second quarter of this year.

I’m Ashley Milne-Tyte for Marketplace.

There’s a lot happening in the world.  Through it all, Marketplace is here for you. 

You rely on Marketplace to break down the world’s events and tell you how it affects you in a fact-based, approachable way. We rely on your financial support to keep making that possible. 

Your donation today powers the independent journalism that you rely on. For just $5/month, you can help sustain Marketplace so we can keep reporting on the things that matter to you.