GAM's Gieger Talks Return

TSC: Are hedge funds becoming more accessible to high-net-worth and retail investors in the U.S.?

JG: Yes, and I am not surprised. In general, there has been an appetite for diversifying risk following the declines in markets during 2000-2003. Other than bonds and cash, there was no real vehicle other than hedge funds to protect a retail investor from over 40% declines as measured by the S&P 500. Hence the growing population of hedge funds. You only have to look at the number of registrations to see that investment minimums are becoming lower. In fact, there are now many funds with investment minimums below $100,000. However, I would always say that they should be a part of an overall portfolio and should only be purchased by accredited investors.