BMO Global Asset Management (BMO GAM) has launched a new hedge fund product in partnership with Goldman Sachs Asset Management (GSAM), aimed at bringing high-conviction hedge fund strategies to accredited Canadian investors seeking low volatility, uncorrelated returns.
The Alpha Managers Hedge Fund, unveiled this week, will leverage the expertise of GSAM’s External Investing Group (XIG) – one of the largest hedge fund platforms globally – to construct a diversified portfolio of elite hedge fund managers. The fund is designed as an evergreen structure, allowing investors monthly access to a curated set of strategies without lockups or drawdown mechanics common in traditional hedge funds.
“This is an exciting collaboration for BMO GAM,” said Sara Petrcich, Head of ETFs & Alternatives at BMO GAM. “Investors are telling us they want diversification from traditional exposures, with a focus on lower beta and volatility. This fund is designed to meet that demand.”
The fund seeks to provide absolute returns across market cycles by selecting managers with proven alpha-generation capabilities and a low correlation to traditional equities and bonds. GSAM’s XIG platform, with decades of experience allocating to and partnering with third-party hedge funds, will lead the manager selection process.
According to Kyle Kniffen, Global Head of Alternatives for Wealth at GSAM, the aim is to cut through the noise of the vast hedge fund universe. “There are thousands of hedge funds globally, but only a small subset consistently deliver skill-based, uncorrelated returns. Through our platform, we aim to give investors access to these managers in a structure that aligns with their liquidity and risk preferences.”
The launch follows BMO GAM’s continued push into alternative assets. The Alpha Managers Hedge Fund joins its Carlyle Private Equity Strategies Fund and Partners Group Private Markets Fund, broadening the firm’s offerings in the growing space of alternatives for retail and high-net-worth investors.
The move reflects a broader trend of wealth managers and asset managers seeking to democratise access to hedge fund and private market strategies once reserved for institutional clients. As market volatility remains elevated and traditional portfolios face diversification challenges, allocator interest in multi-manager hedge fund vehicles with liquid structures is accelerating.
The fund is available to accredited investors in Canada and is offered with monthly liquidity and transparent portfolio rebalancing.
