Would a hedge fund-style mutual fund work?

[ktm]

Quote from harrytrader:

You know I never speak out of thin air

http://www.greencompany.com/HedgeFunds/StartingAHedgeFund.shtml
Starting A Hedge Fund

Marketing and advertising

"You cannot have business cards that say investment adviser on them. You cannot let it generally be known that you are accepting new investors."

"The only way to market your fund is via word-of-mouth to those individuals who you believe are already qualified to be investors. Understanding these restrictions needs to be an important part of your business plan. You want to make sure you are going to be able to attract enough investors to cover your expenses and earn a reasonable living for your trouble."


"You cannot do a one-page summary of your offering documents. You shouldn't give out a chart of your performance results. Your offering documents must stand "on their own" - i.e., no embellishment. No other material can support your securities offering - no slick folder, no charts, no cover letter. Again, this makes the marketing process difficult, but that is part of the barrier to entry. (Plus, we don't want your less-savvy investors to think that the chart represents some rate of return that is guaranteed to be achieved in the future.) "

Quote from harrytrader:

Nice Job Harry!!! Please tell me what the above response about advertising has to do with my response to your post below. I assume you are just changing the subject?

Legislation normally forbids that classical funds use derivatives, the reason given being that they are reserved to "sophisticated" investors, in legislation "sophisticated" investors means 1 million dollar to invest for each participant, since classical funds are for everybody and not only "sophisticated" investors it is not possible except if legislation change but who do these legislations ? And when derivatives are used it is forbidden to make marketing through prospectus.

The issue was using derivatives, not advertising.