European regulators have renewed calls to prevent retail investors from putting money into hedge funds despite the industry's strength in the face of the $6bn (€4.8bn) losses suffered by US hedge fund Amaranth Advisors.

Bloomberg reports that John Howard, chairman of the Financial Services Consumer Panel, an independent body that monitors the Financial Services Authority, said private investors should be prevented from buying shares in hedge funds and fund of hedge funds because they know too little about them.