Credit Suisse's Asset Management Division has launched the Credit Suisse Liquid Alternative Fund, designed to offer access to hedge fund-like returns, with the flexibility of daily liquidity, increased transparency and 1099 tax reporting.
The fund is part of the firm’s growing selection of alternatives-focused mutual funds available through the Asset Management division of Credit Suisse.
Its objective is to achieve investment results that correspond generally to the performance of the Credit Suisse Liquid Alternative Beta Index. The fund attempts to replicate the Index by investing all of its assets in securities and financial instruments that provide exposure to the index.
It is managed by Peter Little and Jordan Drachman, and charges 115 basis points for management fee.
Drachman, who serves as head of research for Credit Suisse Alternative Beta Strategies, said that hedge funds offer the potential to improve diversification and reduce correlation and portfolio volatility; however, investors needing access to capital are often constrained by hedge funds' illiquid nature, and the process for investing in offshore vehicles can be tax restrictive, lengthy and expensive.
"For investors seeking to enhance the efficiency of their portfolios, we believe the Credit Suisse Liquid Alternative Fund may provide a liquid alternative for accessing the risk and return characteristics of hedge funds without the structural impediments of Limited Partnerships," Drachman said in a statement.