Investing directly in single hedge funds makes sense for the eligible investor who has established relationships with many hedge fund managers and who has a thorough understanding of their strategies’ risks and potential to perform.

For investors who wish to access single unregistered hedge funds and do not have these relationships or understanding, there are many obstacles. It is generally easier for investors to access hedge funds through a registered fund of hedge funds for reasons explained below.

There are a large number of single hedge funds and funds of hedge funds, many of which are unregistered and are restricted from advertising.