NEW YORK (HedgeWorld.com)–Ivy Asset Management launched its first Securities and Exchange Commission hedge fund of funds, the Ivy Multi-Strategy Hedge Fund LLC, with US$26 million in assets.

The Ivy Multi-Strategy fund was launched with 22 funds invested across three general strategies, said Larry Simon, president and chief executive of Ivy, which is owned by Bank of New York. The allocations are 50% to market neutral funds, 30% to special situation, or event-driven, funds, and 20% to long/short equity, he said.

The fund is still available to eligible investors, and is distributed through the Bank of New York’s asset management and private client divisions, as well as through Lockwood Financial, a BONY-owned managed account firm. The fund also may be distributed through brokerages using another Bank of New York unit, Pershing. Pershing is a third-party outsourcing brokerage. Bank of New York executives view the fund as an example of how it can benefit from combining efforts among its asset management firms and its distribution outlets.

Ivy began the process of opening the fund with an SEC filing in October. The vehicle carries a US$100,000 minimum and charges a 1.5% management fee and no performance fee . Another fund that Ivy registered at the time, the Ivy Long/Short Hedge Fund LLC, is expected to launch in three to six months, Mr. Simon said.

Ivy manages US$6.8 billion, spread out among 110 hedge funds, a growing number of which are based in the United Kingdom and Europe, according to Ivy.

PBarr@HedgeWorld.com