The question that can arise

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The bankruptcy of the LTCM fund or George Soros's attack on the pound sterling are some of the examples from the history of hedge funds. in the strong growth of the sector is whether there is a greater risk than in the financial system. Following previous experiences, controls have increased and the possibility of generating a systemic risk has been reduced. It can be considered difficult for the bankruptcy of the LTCM fund to be repeated since the regulators make everything possible so that it does not happen again. The risk is in all the money that has been invested in fixed income.


Hedge funds are an investment excuse, they can amplify ID Number List the movements that occur in the market, but their weight in the market is relatively small. Therefore, it can be said that it is a perfect investment excuse. Who can invest in hedge funds? In the United States, investors who want to invest in these types of funds must be accredited. That is, they must meet certain income or net worth requirements . Specifically, they must have an annual income of at least , in the last two years or a net worth of at least one million dollars without counting on their first residence.





On the other hand, in Spain the regulation for investing is similar, since to do so you must comply with some legal and financial requirements. In Spain they are aimed at professional and qualified investors, people who have experience in the financial sector and who have assets exceeding one million euros. They are also required to have an investment portfolio of more than , euros. They are also available to financial institutions and insurers that meet certain regulatory requirements.