On Monday, Morgan Creek Capital Management announced a new fund called Morgan Creek Tactical Allocation fund for retail clients. The new fund would allow access to portfolios that are normally exclusive via a mutual fund.
The new fund of Morgan Creek was said to be the latest in investment firms who had set up mutual funds to provide access to prized portfolios for their clients. Mark Yusko, who is also founder of USD6.5 billion-asset Morgan Creek, would be running the new fund. Clients would be able to invest in big-name hedge funds. Investing in big-name hedge fund usually requires over USD1 million minimum investment and could lock the investments for a number of years.
On the other hand, some analysts in the industry were critical with the new class of funds. Most have said that retail clients would be left with little-known money managers instead of the top ones. In an August 7 research note on the new class of funds, Morningstar analyst Nadia Papagiannis said, "There are problems with most of them."
Join the Conversation