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Even if RT removed their limits, there are still government imposed ones (supposedly to protect unsophisticated investors from risk): https://en.wikipedia.org/w
by blue11 11y ago
Even if RT removed their limits, there are still government imposed ones (supposedly to protect unsophisticated investors from risk):
https://en.wikipedia.org/wiki/Accredited_investor#United_States https://en.wikipedia.org/wiki/Accredited_investor#United_Sta...
RT's limits are much higher though, and that probably is done with the goal of limiting the number of individual investors. Dealing with investors is a distraction for the fund managers. But the main issue is proprietary information. The more investors you have the higher the risk of information leakage to your competitors.
- Tloewald 11y agoHe states another reason in the interview — if the fund gets too large their models will stop working because their decisions will have too much influence on the market.