Bestinvest predicts public interest in hedge funds

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Bestinvest predicts public interest in hedge funds

Tue 8th Jul 2008

The public will "absolutely" develop interests in hedge funds if they become available on the mass market, Bestinvest has said.

John Davey, analyst at the independent adviser, said people would be attracted to the possible returns in interest.

He said hedge funds offer different strategies and markets as well as "the potential of an absolute return through all conditions".

Mr Davey acknowledged that hedge funds on the mass market would "probably" be mainly for the very wealthy, adding: "If they become available to the mass market then they will be able to be invested in by the retail investor."

It was revealed in June that the FSA was to reconsider the ban on hedge funds being marketed directly to investors in the UK.

Datamonitor predicted that the UK onshore hedge fund market would grow from £6.3 billion in 2007 to £37 billion by 2012.

Hedge funds are investments intended to make money every year regardless of the financial climate - an absolute return strategy.

Some experts believe that hedge funds could account for up to half of all trading on the London Stock Exchange.

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