Not all hedge funds are created equal. Several investment funds actually operate within the aegis of the SEC and do just fine, thanks.

Four, given the recent ding on all things financial, present buying opportunities. While Morningstar is doing the unthinkable, and covering the unregulated hedge fund biz, they have thus far ignored these stocks, so you'll have to go "elsewhere" to find data on them. Forbes had a nice piece on them in June "Vehicles for Your Inner Blackstone"

Comprass Diversified Holdings (CODI) MCG Capital Corp (MCGC) and American Capital Strategies (ACAS) represent some of the better, and more conservative picks that have been good dividend buys.

ACAS is trading to a 10.53% dividend yield, and largely makes investments and loans to business enterprises. CODI is at 8.61%, MCGC is running at a 13.69% div on current price.

FYI