http://allaboutalpha.com/blog/2008/07/22/can-us-retail-investors-fend-for-themselves/ Hedge funds, portable alpha, 130/30 and alpha-centric investing Fri, 12 Mar 2010 16:56:36 +0000 http://wordpress.org/?v=abc hourly 1 http://allaboutalpha.com/blog/2008/07/22/can-us-retail-investors-fend-for-themselves/comment-page-1/#comment-126423 Jake Wed, 23 Jul 2008 23:00:23 +0000 http://allaboutalpha.com/blog/2008/07/22/can-us-retail-investors-fend-for-themselves/#comment-126423 Shadab missed the most important reason why Hedge Funds should me made available to a wider number of investors: They are building strategic information advantages that give them an advantage in the market over the retail investor. When you look at the capabilities that are being built in fundamental and quantitative analysis and compare that with the dumbing down of information available to a retail investor, who would you bet on? Gerson Lehrman vs. MarketWatch? Bloomberg v. SeekingAlpha? Please, no contest. To paraphrase a popular 80's entertainer: Please hedgies, don't hurt 'em! Government regulations may have, in fact, created a situation where hedge funds will continue to take economics from retail investors due to this information advantage and perpetuate a transfer of wealth the government didn't intend (or maybe it did). Shadab missed the most important reason why Hedge Funds should me made available to a wider number of investors: They are building strategic information advantages that give them an advantage in the market over the retail investor. When you look at the capabilities that are being built in fundamental and quantitative analysis and compare that with the dumbing down of information available to a retail investor, who would you bet on? Gerson Lehrman vs. MarketWatch? Bloomberg v. SeekingAlpha? Please, no contest. To paraphrase a popular 80’s entertainer: Please hedgies, don’t hurt ‘em!
Government regulations may have, in fact, created a situation where hedge funds will continue to take economics from retail investors due to this information advantage and perpetuate a transfer of wealth the government didn’t intend (or maybe it did).

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