Bank of America launched its first registered hedge fund of funds April 1.
BACAP Alternative Multi-Strategy Fund promises to achieve long-term capital appreciation with low volatility under a wide range of market conditions by investing in hedge funds across strategies. This closed-end investment company was registered late last year. Banc of America Capital Management alternative investments group is the manager.
"Alternative investment products are increasingly filling an important role in an investors asset allocation," said Larry Morgenthal, managing director of alternative investments at BACAP, in a statement.
"Designed to capture opportunity across the broad hedge fund landscape, yet limit the exposure to any one investment element through diversification, the BACAP Alternative Multi-Strategy Fund and its fund of hedge fund approach takes its place at the foundation of our product offerings for clients in this increasingly relevant space," he added.
The firms total assets under management were at $310 billion as of the end of December. This is its second registered hedge fund. BACAP also runs Opportunity Strategy, a long-short technology fund launched in October 2002.