Retail Investor Focused Hedge Fund Rakes In $1.3B

A hedge fund strategy designed for small investors — also known as retail investors — has officially raised $1.3 billion in two years, with the help of Franklin Templeton Investors, Reuters reported yesterday (June 17).

That makes the hedge fund, which was launched in 2013, Franklin Templeton’s “fastest growing fund launch of any stripe over the last five years,” company officials told Reuters. This fund, known as the Franklin K2 Alternative Strategies Fund, enables investors who hedge funds to invest just $1,000 in the U.S. fund and leverage the remaining funds elsewhere. Because traditional hedge funds typically require investments of $100,000, this type of fund is attractive toward smaller or retailer investors, the Reuters report noted.

“Although K2 has been investing in hedge funds for over 20 years, we have seen a growing level of demand, especially since 2008, for alternative investment opportunities particularly in a more daily liquid format,” David Saunders, founding managing director of K2 Advisors, a unit of Franklin Templeton, told Reuters.

“Investors today are faced with an array of risks in traditional asset classes which are driving them to seek alternative investment choices, and there is broad-based demand for liquid alternatives,” he added.

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