Hedge fund professionals have welcomed calls from Christopher Cox, chairman of the Securities and Exchange Commission, for an increase in the accredited investor requirements for potential hedge fund investors. The move follows rises in house prices and inflation.

The debate was broached during the Managed Funds Association's "Post Goldstein: Outlook for hedge fund Legislation and Regulation" seminar last week. Currently, investors with at least $1m (€788,000) in net worth, a measure that includes the value of a house, or more than $200,000 in annual income, can invest in hedge funds. However, the recent rise in real estate values and inflation has made these thresholds easier to reach than in the past.