Across My Desk: Hedge Funds

Hedge funds are hot but not for everyone. To learn more about them, there's a free brochure titled "Investing in Hedge Funds -- Information for the Retail Investor," that's available to everyone. The press release on that subject follows:

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"The CFA Institute Centre for Financial Market Integrity released for public circulation a free brochure that provides information primarily for retail investors on issues they should consider when investing in hedge funds.

The CFA Institute Centre produced this brochure in conjunction with four of its regional CFA Institute member societies -- the Belgian CFA Society, Swiss CFA Society, Hong Kong Society of Financial Analysts, and CFA Singapore.

"Investors may be confused about the risks and potential rewards of investing in a variety of investment products, including hedge funds," said Kurt Schacht, CFA, managing director of the CFA Institute Centre. "By highlighting a number of areas that investors should consider before investing, the brochure helps empower investors to better evaluate the suitability of this type of investing for their overall portfolio."

The brochure, "Investing in Hedge Funds -- Information for the Retail Investor," highlights the differences between hedge funds and other investment vehicles and provides a number of questions investors should ask themselves to make well-informed investment decisions. In particular, the brochure focuses on the varying degrees of leverage and risk associated with hedge fund investing in presenting a "primer" on many of the investment considerations of this investment option.

"The hedge fund sector is a sophisticated area of investment that may not be appropriate for all investors," said Schacht. "This brochure explains in plain language what hedge funds are and how they may differ from other investments, including a number of issues the investor should consider before investing. We hope that retail investors will find this brochure a useful resource to educate themselves about this often complex investment option."

To get your copy, call the CFA Institute at 1.800.247.8132. Or visit: www.cfainstitute.org/centre/relations/pdf/hedge_fund_brochure.pdf.