IIROC was designed for Glen Bradford How many provinces allow unsophisticated investors exemptions in limited partnership?
Position: Hedge funds are inappropriate for unsophisticated investors.
Rationale: The inappropriateness is because unsophisticated investors:
- Lack the expertise to understand the risks inherent in these types of investments
- Typically do not possess the kind of financial resources to hire the expertise needed, weather volatile performance, or endure financial losses;
and because these investment vehicles:
- Have limited transparency about investment strategies, instruments, and risks, and
- Do not provide the regulatory protections that retail investors receive when they put their money into other investment vehicles.