Hedge funds look for retail money
Coastal Capital has become one of a growing number of fund managers marketing hedge funds to retail investors.
Coastal Capital has become one of a growing number of fund managers marketing hedge funds to retail investors.
Coastal is to badge a fund managed by US-based Magnum Fund Management to distribute to both wholesale and retail investors and Australia and New Zealand.
The fund invests in a number of hedge funds offered around the world, similar to the way a multi-manager fund is used with other asset classes.
Coastal has already signed a distribution deal with the Ord Minnett financial plan-ning business and hopes to sign up further deals with dealer groups on top of tar-geting investors via its Internet site.
Coastal’s move follows Deutsche Bank’s launch in to the retail market with a multi-manager fund earlier this year and the launch of a suite of hedge funds by fledgling hedge fund manager Hedge Funds of Australia last year.
Magnum Fund Management chair Dion Friedland says the current market condi-tions are ripe for hedge funds.
“With the growing sophistication of Australian investors and stock market volatil-ity in the United States and elsewhere, we think that the time is right for Austra-lians to consider alternatives to the traditional investment classes of shares, bonds and property,” he says.
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