Alternative investment manager FS Investments has launched its first open-end mutual fund, FS Multi-Strategy Alternatives Fund, which seeks to generate absolute returns with low correlation to traditional investments over a complete market cycle, and is distinct in that it combines hedge fund managers and alternative beta strategies.
“FS Investments always looks for differentiated ways to help investors access alternative sources of returns,” says Michael Forman (pictured), Chairman and Chief Executive Officer of FS Investments. “FS Multi-Strategy Alternatives Fund was created to provide exposure to an investment approach employed by some of the most successful institutional investors. We are excited to bring this solution to the broader investing public and do so in a daily liquid, transparent fund.”
FS Multi-Strategy Alternatives Fund uses a hybrid investment approach, linking best-in-class traditional hedge fund managers that can provide the potential for skill-based outperformance with robust alternative beta strategies – cost-efficient, rules-based strategies that seek to capture alternative sources of return across asset classes.
FS Investments has selected Wilshire Associates Incorporated (Wilshire) as the fund’s primary sub-adviser. Wilshire is a diversified global financial services firm dedicated to providing institutional investors with portfolios, analytics, research and investment consulting. Wilshire has over USD1 trillion in advisory assets for over 500 pension, endowment and foundation clients in more than 20 countries globally.
“This hybrid approach has redefined what a core alternatives allocation should be,” adds Greg Bassuk, Head of Liquid Alternative Strategies at FS Investments. “With this new fund, FS Investments provides a single fund solution that leverages Wilshire’s leading hedge fund and alternative beta due diligence, asset allocation, rebalancing and risk management capabilities with FS Investments’ expertise in thoughtfully designing and delivering an institutional-quality product to individual investors.”