Pyramis to Offer Long/Short Funds

Pyramis, the institutional arm of Fidelity, is incubating 13 long-short funds and plans to launch four of them before the end of this year, Reuters reports. Over the next five years, Pyramis expects to attract $20 billion to long-short funds.

Pyramis recently launched another alternative investment, a 130/30 fund.

The launch comes at a time when institutional investors are increasingly looking to alternative investments, including hedge funds.

“Over the next five years, we wouldn’t be surprised if we build a $20 billion business in long-short strategies,” said Young Chin, Pyramis chief investment officer. Pyramis currently manages $158 billion in assets.

“We think that strategies involving shorting are slowly becoming mainstream. So, our strategy here at Pyramis is to build a large platform to complement our long-only strategies, with the view that long-short strategies will have growing interest in the institutional market.”