This case demonstrates that even experienced investors in hedge funds can be victims of unscrupulous operators.

We are also in the grips of liquidations by hedge funds and a lot of dealers don't want to see big exposures,

Experienced investors should already have well-rounded portfolios, but might be prepared to add specific industry-sector funds or even single-country equity exposure. This could give them the extra style bias they want to help them to achieve additional growth potential during the next phase of the economic cycle.

Investors need to do the same degree of comparison shopping they would normally do when choosing between funds, which means digging into things like expense ratios, historical performance and holdings.

Registered funds have opened up hedge funds to a broad audience.

Successful hedge funds will be entrepreneurial; it is the essence of the craft.