NEW YORK (HedgeWorld.com)–Alternative Management Group plans to launch its first principal protected hedge fund for U.S. investors, combining the attributes of a CPPI structured note and a zero coupon bond in an absolute return offering slated to hit the market in September.
Called Hedge Fund 2011, the fund essentially is buying the return of an eight-year bond and the returns of 18 underlying hedge fund managers, said Michael P. Tracy, managing partner at AMG. The fund is being offered through AMG’s Structured Products Group and is invested via managed accounts that are sold through broker dealers and registered investment advisers.
“As far as I know this is the first offering of its kind through the brokerage community,” Mr. Tracy said. “And so far we have had a very warm response.”
AMG chose LJH Global Investments LLC, Naples, Fla., as the hedge fund advisory firm that is selecting the underlying managers that are active in seven hedge fund strategies. Those strategies include: equity market neutral, long/short equity, fixed-income arbitrage, event driven, global macro, commodity trading advisers and convertible arbitrage.