It says
In addition, as individual capital commitments to a hedge fund manager tend to be small in relation to the investor’s overall portfolio, it is critical that a hedge fund investment carries the same limited liability protection as buying shares of a public company. This is especially important given the leverage used by most hedge fund managers.
What is the correlation between capital commitment size and limited liability protection? If the cap commit is high instead of small, what would change?
In addition, as individual capital commitments to a hedge fund manager tend to be small in relation to the investor’s overall portfolio, it is critical that a hedge fund investment carries the same limited liability protection as buying shares of a public company. This is especially important given the leverage used by most hedge fund managers.
What is the correlation between capital commitment size and limited liability protection? If the cap commit is high instead of small, what would change?
