# kaal:claim:1428387-030

**Claim.** Unless an investor's business is primarily to invest in hard-to-value assets, that investor's sophistication cannot be assumed regardless of personal wealth.

**Type.** condition  **Support.** argued

**Holds when.**

- for investments in hard-to-value assets and complex financial instruments

**Source quote.**

> Unless the business of an investor is to primarily invest in certain hard-to-value assets, the sophistication of such investor can probably not be assumed, regardless of personal wealth. Investors who could

**From.** Kaal, *Hedge Fund Valuation Retailization, Regulation, and Investor Suitability* (2009), VI.B Investor Qualification Requirements for Investments in Hedge Funds, page 49

**Cite as.** Kaal, Hedge Fund Valuation Retailization, Regulation, and Investor Suitability (2009). SSRN: https://papers.ssrn.com/sol3/papers.cfm?abstract_id=1428387

**Verify.** sha256 of source PDF `6aa3a280dc6750723be2389f3af2aabf3a16c4ce20e49fcdaddd7f2ea95a67aa` at https://raw.githubusercontent.com/wulfkaal/Academic-Papers/main/papers/pdf/Kaal%20-%202009%20-%20Hedge%20Fund%20Valuation%20Retailization%2C%20Regulation%2C%20and%20Investor%20Suitability.pdf

**Failure mode.** wealth-as-sophistication-proxy  (family: investor-protection-gap)

**Topics.** institutional-design

**Keywords.** investor-sophistication, wealth-proxy, accredited-investor, hard-to-value-assets

**Related claims.**

- extended_by: https://wulfkaal.github.io/claims/2998097-010
- extended_by: https://wulfkaal.github.io/claims/1806252-032

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