Morgan Creek Launches Mutual Fund

Sep 17 2013 | 2:05pm ET

Another prominent hedge fund is giving retail investors an opportunity to tap into its strategies.

Morgan Creek Capital Management has launched a mutual fund that will be available for as little as a $2,000 minimum investment. The Tactical Allocation Fund will offer daily liquidity and charge a 0.75% yearly management fee.

The new fund will invest in stocks, bonds and commodities, and will have the ability to short.

"It's an access thing," Morgan Creek founder Mark Yusko told The New York Times. "If you think about what institutional investors have done better, it is that they have access to more sophisticated strategies."

Yusko, who earlier this year left the Endowment Fund, a fund of hedge funds joint-venture he set up in 2003 while running the University of North Carolina at Chapel Hill's endowment, told the Times that he is bearish on emerging markets generally but bullish on Indian banks and Chinese gaming and Internet companies. And he suggested that the Federal Reserve will soon begin investing directly in stocks, because it is "running out of Treasuries to buy."

Yusko will manage the mutual fund.

Separately, RiverPark Advisors said it had transformed the Wavecrest Partners Fund I hedge fund into a mutual fund, Structural Alpha. The fund, which has returned 9.58% since its inception five years ago, opened to investors on July 1.

Wavecrest founders Justin Frankel and Jeremy Berman have joined RiverPark and continue to manage the fund, which becomes the firm's third hedge-fund-like mutual fund.

"We are big believers in the advantages of liquid alternatives," RiverPark CEO Morty Schaja said. "We plan to continue to explore new ways to offer investors and their advisors hedged exposure to the market."


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