Dreyfus has launched the Dreyfus Dynamic Alternatives Fund, a mutual fund designed to provide exposure to a range of hedge fund returns.

The fund seeks to approximate or exceed the total return of its portfolio of hedge funds included in the HFRI Fund Weighted Composite Index.

The fund, which is sub-advised by Mellon Capital Management, combines a hedge fund beta replication strategy with a managed futures replication strategy. The fund does not invest directly in hedge funds.

"Dreyfus Dynamic Alternatives Fund provides exposure to hedge fund betas while seeking to mitigate downside risks during volatile periods, and at the same time maintains the ease of access and liquidity of a mutual fund," said Jon Baum, chairman and CEO of Dreyfus. "The strategy seeks to replicate the HFRI returns using relatively liquid instruments and tactically allocate to managed futures in volatile markets."