Arden, Fidelity In Mutual Fund Joint-Venture

Dec 7 2012 | 11:23am ET

Mutual fund giant Fidelity Investments has struck a deal to win its clients access to some of the most well-known hedge funds in the industry.

Fido and Arden Asset Management last week launched a mutual fund of hedge funds, boasting nine underlying managers, including Chilton Investment Co., Jana Partners and York Capital Management, The Wall Street Journal reports. The vehicle is available to some clients of the Fidelity Portfolio Advisory Service, which has a $50,000 minimum investment requirement.

Despite the somewhat restrictive access, the fund debuted with more than $700 million from Fidelity. It seeks high-single to low-double-digit returns over a three-to-five year period. "Our goal is to provide investors with additional opportunities to improve risk and return as well as potentially improve portfolio resilience in down markets," a Fido spokesman told the Journal. Arden founder Averell Mortimer added that the fund is "an excellent way to achieve portfolio diversification," while York founder Jamie Dinan called the fund "innovative."

"We've collaborated with Arden for a long time and were impressed by the seamless structure and process the firm developed," Dinan continued.

The new fund has a 2.3% expense ratio.


In Depth

Q&A: Reg A+ Will Transform the Alternative Asset Landscape

Jul 7 2015 | 4:03pm ET

In addition to easing capital formation for small companies, Regulation A+ has enormous...

Lifestyle

Fiat Chrysler Files Paperwork For Ferrari IPO

Jul 23 2015 | 5:05pm ET

Italian sportscar maker Ferrari has taken a step closer to a stock market listing...

Guest Contributor

Lifting of Foreign Ownership Limits Signals Sea Change in Vietnam's Capital Markets

Jul 28 2015 | 3:01pm ET

The lifting of restrictions on foreign ownership limits in Vietnam later this year...

 

Editor's Note