BOSTON Feb 4 Arden Asset Management, which has
been offering retail clients at Fidelity a way to sample hedge
funds for more than a year, is branching out with a second
mutual fund that will give other brokerage customers similar
access to top hedge fund mangers.
Arden, which manages $6.1 billion for pensions and large
institutional clients, launched its Arden Alternative Strategies
II fund this week, a little over a year after rolling out a
similar fund with mutual fund giant Fidelity.
For as little as $1,000, investors will be able to gain
access to hedge fund industry powerhouse firms D.E. Shaw
Investment Management, York Capital Management, CQS (US) and
eight other fund firms, regulatory documents show. Arden plans
to cap fees at 1.99 percent.
The New York-based firm, founded by 21 years ago by Averell
Mortimer, is also rolling out a similar product abroad, aiming
to appeal to investors in Japan and Europe.
Most hedge funds require at least a $1 million commitment,
making them popular with pension funds and institutional
investors but generally off limits for retail clients. Hedge
funds generally charge a 2 percent management fee plus a 20
percent performance fee. They also require clients to leave
their money locked up for months or even years.
So-called hedged-mutual funds, which can use the types of
strategies including short-selling normally reserved for hedge
funds, are gaining traction with investors and advisors as they
look for diversification since the 2008 financial crisis.
And they may become even more popular now that the stock
market is pulling back with the Standard & Poor's down 5.13
percent this year after a 32 percent surge in 2013.
Goldman Sachs, Blackstone Group, Alpha Capital Management,
Neuberger Berman and Hatteras Funds and many other firms offer
their own version of these types of portfolios. Arden's first
fund as well as Goldman and Blackstone's funds all have over $1
billion in assets. The new Arden fund has $40 million in assets
and will be marketed to registered investment advisers, among
Over the last 12 months Arden Alternative Strategies I has
returned 5.12 percent, data from Morningstar show.