Mainstay Investments has augmented its alternatives offerings with two hedge fund-of-funds.
The Private Advisors Alternative Strategies Master Fund (Master Fund) and the Private Advisors Alternative Strategies Fund (Feeder Fund) both aim to provide small- to mid-sized institutional investors and advisors with exposure to hedge strategies.
Structured as "master-feeder” hedge fund-of-funds, the Feeder Fund invests its investible assets in the Master Fund, which invests primarily in hedge funds. Investment strategies include global macro, credit, income, event driven, relative value and global long/short equity strategies.
The two funds are subadvised by New York Life-affiliate Private Advisors, a Richmond, Va.-based fund-of-funds manager, which manages $4.5 billion in assets.
“Institutional investors and pension funds have long relied on
alternative investments such as hedge funds to diversify their portfolios and achieve returns,” stated president Stephen Fisher of MainStay Funds, in a company release. “Today, we’re seeing more and more demand among individual investors for investments that offer the benefits of hedge funds – long-term capital appreciation, less volatility and a low correlation to the equity and fixed-income markets – with more liquidity and flexibility.”
MainStay Investments is the mutual fund distribution arm of New York Life and has $65.5 billion in assets under management.