Let Them Eat Hedge Funds

As European regulators liberalize the rules on selling hedge funds to the mass market, mainstream managers are dreaming up ways to peddle absolute-return funds.

Warning from the Federal Minister of Finance: Investors must be willing and able to carry the risk of a loss in the value of their investment, which may mean a total loss.

--from a German hedge fund marketing brochure

Armed with high hopes and a hefty advertising budget, the resolute salesmen of DWS, the Frankfurt-based retail fund arm of Deutsche Asset Management and Europe’s biggest seller of mutual funds, marched into uncharted territory in March when they started selling hedge funds to individual investors...

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