New Accreditation Rules to Benefit Some

Summary


BERKELEY, Calif. (HedgeWorld.com) - The Securities and Exchange Commission's attempt to raise the bar on the accredited investor definition could hurt hedge funds. But it also could boost the business of some wealth managers, those who strive to give the average Joe exposure to alternative investments.

An example is Berkeley, Calif.-based Contango Capital Advisors Inc., the $1.5 billion wealth management arm of Zions Bancorporation. The registered adviser, under the guidance of Chief Executive George Feiger and Chief Investment Strategist Milton Balbuena, has created a new investment management approach aiming to replicate some of the alternative investment strategies available to non-accredited investors. Most of the clients using this program have between $250,000 and $500,000 to invest, said Mr. Balbuena. The firm debuted the program three years ago.

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New Accreditation Rules to Benefit Some

"Many of us come from the non-traditional investment world," said Mr. Balbuena, who prior to Contango served as vice president of investment strategies at Prime Capital Corp., a ...

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