Myths & Facts

Hedge Fund Misconceptions

Hedge funds are often perceived as unregulated, risky and excessively-leveraged investment vehicles that lack transparency.

Let’s examine some of the most common misunderstandings:


  • They are unregulated
  • They are very risky
  • They charge excessive fees
  • They have long ‘lock-up’ periods
  • They lack transparency


  • Established providers are regulated at the manager level
  • Can provide superior diversification/downside limitation
  • Performance fees only levied when ‘earned’
  • Range of liquidity profiles available according to strategy
  • Disclosure is improving but data interpretation is complex

We use cookies to give you the best online experience. By agreeing you accept the use of cookies in accordance with our cookie policy.

I accept I decline Privacy Center