The Dark Side Beckons Ned Johnson

Fidelity Investments is dipping its toes into hedge fund waters via a multi-manager mutual fund launched in partnership with hedge fund shop Arden Asset Management.

According to a Wall Street Journal report, the mutual fund began trading last week with more than $700 million from Fidelity, according to people familiar with the fund. Its current roster of managers includes Chilton Investment Co., Jana Partners and York Capital Management.

The Arden fund will draw money from clients of the Fidelity Portfolio Advisory Service, which requires a $50,000 minimum.

"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 Fidelity spokesman told the pub.

The fund charges a net expense ratio of 230 basis points.