It wasn’t long ago that hedge funds catered only to the most exclusive clientele. In recent years, however, Europe’s largest hedge funds have opened their doors to more ordinary investors with the launch of products known as liquid alternatives.

Liquid alternatives combine hedge fund strategies into more tightly regulated fund structures such as Ucits in Europe. These offer liquidity - investors can have their cash in a few days, unlike hedge funds, which may offer only monthly or even quarterly selling opportunities - and restrict leverage or the use of complex financial instruments. This makes them accessible to a broader clientele that might otherwise not be able or willing to invest in hedge funds.