Deutsche Opens Registered Fund to the Public

The hedge fund group, which has US$5.5 billion in assets under management, plans to raise US$500 million in initial fund assets. The fund registration process took about a year and a half to complete and included a name change and the dropping of the incentive fee.

The fund’s investment objective is to seek attractive risk adjusted returns with the added benefit of lower volatility in a fund of funds structure. Between 15 and 40 hedge fund will use a variety of absolute return strategies, and now more than 10% of the fund’s assets will be allowed in any one particular hedge fund.

The investment minimum is US$50,000, and the fund is open to accredited investors. Eligible investors also include those that have an account managed by a registered investment adviser that is subscribing for units in a fiduciary capacity on behalf of the account. Fees include a 3.5% maximum placement fee.

Scudder Distributors Inc and Deutsche Bank’s private bank and DB Alex Brown are distributing DB Hedge Strategies. Deutsche is in discussions with other intermediaries on other distribution channels for the registered fund.