Philadelphia’s AlphaHedge Capital Partners has launched a managed accounts platform supporting an array of long/short equity hedge fund strategies.
AlphaHedge chairman and CEO Gregory S. Horn said the platform was inspired by growing market frustration with a decade’s worth of high volatility and low returns from equities.
Horn says the AlphaHedge SMAs are an antidote to the high minimum investments and limited liquidity of traditional hedge funds and the “tax inefficiencies, lack of transparency and elevated fixed fees” of alternative mutual funds.
Most AlphaHedge strategies carry a minimum investment requirement of $250,000, all strategies are held in brokerage accounts registered to the investor and all are “largely liquid,” according to the firm.
The long/short equity strategies offered on the AlphaHedge platform cut across market capitalization ranges, geographic regions, market sectors and investment styles. The platform went live in February and is currently running accounts for three strategies and is deliberating with “numerous other talented managers” interested in participating on the platform.
The firm says that although some of its managers have assets in excess of $1 billion, the platform can be “especially advantageous” to “modest-sized and emerging hedge fund managers.” Kent G. Bonniwell, AlphaHedge president and COO, says the platform offers a new channel for small funds which can attract assets without the burden of servicing individual client accounts.
AlphaHedge’s strategies will initially be launched on the Pershing NetX360 managed account platform.
“AlphaHedge’s institutional-quality platform is built to deliver the intellectual capital of hedge fund managers to advisors and their clients in a scalable manner while effectively minimizing the customary operational risks that can make advisors and investors reluctant to utilized hedged strategies,” said Bonniwell.