I am not trading it myself, it is an investment in an index of hedge fund managers. The product is being produced by one of the major European investment banks (think Credit Suisse, BNP, Deutsche, UBS) so it's not being marketed by crooks. Also, the underlying hedge fund mangers all manage in excess of 1b plus.
Essentially you are getting 400% exposure on the returns of these managers. Therefore, I'm assuming it's one of the banks above providing the leverage? If they are, then what would they have to gain from doing this?