Hedge Funds

Hedge funds are not registered as publicly traded securities.
For this reason, they are available only to those
fitting the Securities and Exchange Commission definition of
“accredited investors”—individuals with a net worth exceeding
$1 million or with income greater than $200,000
($300,000 for couples) in each of the two years prior to the
investment and with a reasonable expectation of sustainability.

Institutional investors, such as pension plans and limited
partnerships, have higher minimum requirements.
The SEC reasons that these investors have financial advisers
or are savvy enough to evaluate sophisticated investments
for themselves.