Fidelity Investments has added the IQ Alpha Hedge Strategy Fund to its mutual fund platform, making it available to registered investment advisors and retail investors.
The fund aims to deliver hedge fund-like performance at a lowest cost, while offering some transparency and liquidity to investors. The minimum investment for retail investors is $2,500, and for institutional investors, it is $250,000.
The extraordinary market volatility investors have experienced serves to highlight the positive role alternative asset classes can play in providing portfolio diversification, said Adam Patti, chief executive officer of IndexIQ. The addition of the IQ Alpha Hedge Strategy Fund to the Fidelity platform is a significant step forward in reaching the broader RIA and retail market.
IndexIQ also recently launched an exchange-traded fund that tracks publicly traded funds funds, the IQ Hedge Multi-Strategy Tracker ETF, and the firm palns to launch other alternative investment ETFs.