Hedge Fund Investments and the Prudent Investor Rule

Posted: 7 Nov 2003

See all articles by Paul Ali

Paul Ali

University of Melbourne - Law School

Abstract

This article is concerned with the key legal issue facing institutional investors that have made or are considering hedge fund investments, namely the legal duty to invest the funds entrusted to them prudently. These investors do not, in general, invest for their own account but, instead, undertake investments for the benefit of others.

The article is divided into two parts. The first part explains the nature of hedge funds and the chief hedge fund investment strategies. The second part examines the "prudent investor rule" and provides a practical checklist for institutional investors.

Keywords: Hedge Funds, Alternative Investments, Prudent Investor Rule Governance, Pension Funds

JEL Classification: G23, K22

Suggested Citation

Ali, Paul, Hedge Fund Investments and the Prudent Investor Rule. Trust Law International, Vol. 17, No. 2, pp. 74-89, 2003. Available at SSRN: https://ssrn.com/abstract=463281

Paul Ali (Contact Author)

University of Melbourne - Law School ( email )

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