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An Artifact Of Law: U.S. Prohibition Of Retail Hedge Funds, Houman B. Shadab
An Artifact Of Law: U.S. Prohibition Of Retail Hedge Funds, Houman B. Shadab
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The U.S. hedge fund market is one of the largest and most sophisticated hedge fund markets in the world, yet due to U.S. securities regulation it is also one of the least accessible. In the U.S., federal securities law requires individuals to be wealthy to qualify to invest in hedge funds. Nonwealthy individuals, or retail investors, are effectively prohibited from purchasing hedge fund securities. Wealth-based qualifications are meant to ensure that those investing in hedge funds possess enough financial sophistication to make informed investment decisions. However, the application of wealth-based qualifications to hedge fund investors is more an artifact of …