For some time now, the distinction between hedge funds and some mutual funds has been waning. Two new offerings should help that process along.
Janus (JNS:NYSE – commentary – research – Cramer’s Take), the Denver money manager with $148 billion under management, is preparing to launch the Janus Advisor Long/Short Fund this spring. Pending clearance from the Securities and Exchange Commission, the new fund would be permitted to make both bullish and bearish bets on stocks, a hallmark of hedge fund investing.
Separately, Morningstar, the mutual fund rating service, is readying a new category for mutual funds employing a significant percentage of short sales, another sign that the trend is gaining momentum.
Combined, the two developments reflect a rising appetite for alternative investments in the retail world, and a desire among mutual funds to feed it.
“We believe we can deliver strong results for our shareholders,” says Shelley Peterson, a Janus spokeswoman. “There is a growing demand for hedge-like alternatives.”
The new Janus fund will take long and short positions in domestic and foreign equity securities for a minimum investment of $10,000. Operating expenses are expected to total about 1.99% of assets.
