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A Bay Street sign is seen in the financial district of Toronto on June 2, 2014.Mark Blinch/The Globe and Mail

The future for Canadian hedge funds needs to be increasingly outside Canada's borders.

The new head of the Alternative Investment Management Association – Canada wants to make the rest of the world more aware of what's going on in the industry here. Michael Burns, who recently took over as chairman of the association, says that outside Canada there is not enough awareness of how much the industry in this country has changed.

Mr. Burns said he wants to showcase "the talent we have in Canada internationally, so the international perception of Canada coincides with what is going on in the industry."

The notion that Canada is simply full of managers who buy mining stocks is no longer appropriate. (There was a time when it was much more so.)

"Now people are realizing there is much, much more going on," Mr. Burns said.

Mr. Burns, a lawyer by trade, has long been active in the sector. His practice focuses on the area, and he has been closely involved with AIMA before becoming chairman. Over that time, the industry has gotten bigger.

The association's membership in Canada has almost doubled in the past five years, rising to about 115 members from the industry.

Many funds in Canada have struggled to reach critical mass. Adding international customers helps offset the fact that the market of high-net-worth and institutional investors in Canada is relatively small.

But beyond that, the industry is working to try to open up investing in hedge funds to more investors. Currently, investors must meet accredited investor rules (which basically mean you have to be wealthy).

A rule under consideration by regulators would allow retail investors easier access. It would basically bring hedge funds under a modified mutual funds rule.

"That is going to be a huge catalyst for the industry," he said.

However, he acknowledges that the industry will have to educate smaller investors and their advisers. Otherwise, there is a risk that people get into inappropriate products, and that creates a backlash.

"For your average retail investor who doesn't have the ability to allocate to those strategies, they are by and large not aware of what they are and what they can do for your portfolio," Mr. Burns said. "There's a job there for us to do."

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