Industry may suffer if hedge funds move into retail market

An expansion of hedged products into the retail market could cause Europe's hedge fund industry to 'lose its way' and suffer from diminished returns, according to a hedge fund expert. Raffaele Jerusalmi, executive director of Borsa Italiana, told Borsa Italiana's conference in Milan in early June the performance of Europe's hedge funds could fall if restrictions imposed to protect retail consumers restricted the funds' investment universe. Jerusalmi attributed the Europe-wide push towards retail distribution of hedge fund products to many ex- long-only European firms entering the he...