Risk.net

Investors finding value in structured products based on hedge funds

Investors who want to diversify into the hedge fund universe but have constraints on how they do it, can find a solution through structured products. These vehicles offer a way to access hedge funds that may be off limits to direct investment.

A hedge fund structured product can appeal to investors with little appetite for risk or who face legal, tax or compliance constraints. They can also provide investors with a regular income.

Eric Personne, head of fund derivatives in EMEA at Merrill Lynch,