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

Whisky Business: The Ultimate Liquid Alternative Investment

Sep 15 2014 | 7:02am ET

David Robertson knows his single-malt whisky—he was the Master Distiller at the...

Lifestyle

Hedgies Rock Out For Children's Charity

Sep 15 2014 | 8:40am ET

It's that time of year again—when hedgies trade in their spreadsheets for guitars...

Guest Contributor

Volkered: How Financial Sector Reforms are Creating Opportunities for Hedge Funds

Sep 16 2014 | 11:28am ET

New regulations have dramatically curtailed proprietary trading activity in investment...

 

Editor's Note

    Get A Sneak Peak Of The Alpha Pages

    Aug 25 2014 | 11:21am ET

    As many of you know, FINalternatives was recently acquired by the owners of Futures magazine, a firm called The Alpha Pages LLC. Today marks the soft-launch of a new sister site for both publications. As its name suggests, The Alpha Pages will cover all types of alternative investments, going far beyond the more well-known ones such as hedge funds and private equity. Read more…

 

Futures Magazine

September 2014 Cover

The London Whale: Rogue risk management

The London Whale saga is a twist on the typical rogue trader story as the rogue trader recognized the error of his ways and was prepared to take his medicine but was instructed by superiors to “defe...

The Alpha Pages

TAP July/August 2014 Cover

The Alpha Pages Interview: Senator Rand Paul

Senator Paul sat down in the debut series of the Alpha Pages Interview to discuss the broken tax code, regulation surrounding Bitcoin, and his plans for the 2016 Presidential election.