Article: Hedge funds best for institutions.

Byline: Niki Natarajan

Hedge funds, traditionally sold to high net worth individuals, might be more suitable for the requirements of institutional investors, according to the latest research from the ISMA Centre at the University of Reading.

The low interest rate and declining stock market environment is prompting institutions to think about dipping their toe into hedge funds for the first time. But the study says investors will have to put more than the typical 1% to 3% range, which many institutions are currently considering, to have some impact on the overall portfolio.

Harry Kat, associate professor of finance, and Gaurav Amin, a PhD ...

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