The investing public's disgust with the fund industry has created a good environment for reform.

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Conservative anger over the measure helped launch the tea party movement, and conservative groups joined with industry groups to fund a giant public pressure campaign against the legislation.

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Looking past the current public cynicism about the hedge fund of funds industry, it is incumbent on financial advisors and their clients to bear in mind that the need for non-correlating asset classes will never change, and hedge funds of funds still provide this effective source of diversification.

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