Goldman’s Mutual Fund of Hedge Funds targets 401(k) and individual portfolios

New York (HedgeCo.Net) – Goldman Sachs announced it was launching the Goldman Sachs Multi-Manager Alternatives Fund. This new mutual will invest directly in hedge funds which up until now have been only available to Accredited Investors.

The fact sheet states the goal of the fund is to provide “Exposure to alternative and nontraditional investments with the liquidity and convenience of a mutual fund.” and goes on to state “Once available only to institutional investors, alternative investments are increasingly used by individual investors seeking to diversify their returns and reduce portfolio risk. The Fund combines a wide range of strategies including Equity Long/Short, Dynamic Equity, Event Driven & Credit, Relative Value, Tactical Trading and Opportunistic Fixed Income.”

Focusing on the difficulty of getting into alternative investments the fund seeks to provide easy access for individual portfolios and retirement accounts so that they can have similar access as their institutional counterparts.

Having access to a hedge fund portfolio comes at the annual fee of 3.3% which as CNN Money puts it is “about three times what the average stock mutual mutual fund charges, and about 25 times the 0.13% a year that the average S&P 500 index fund charges.”

In the announcement of the new fund Jason Gottlieb, the Fund’s co-portfolio manager stressed the need for alternative investments into each portfolio with the following statement: “We believe today’s complex markets require sophisticated investment techniques that can enhance a traditional portfolio, and bring investors closer to their long term goals,” he went on “We are excited to offer investors the Goldman Sachs Multi-Manager Alternatives Fund to complement core portfolio holdings, by providing a comprehensive alternative investment solution that may improve risk-adjusted returns and diversify a portfolio.”

Alex Akesson
Editor for
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