Hatteras Funds, a boutique alternative investment provider, has launched a variable trust fund, the Hatteras Alpha Hedged Strategies Variable Fund.
The fund invests in multiple hedge fund strategies and multiple hedge fund managers and provides daily liquidity and position-level transparency.
The fund seeks to obtain consistent returns while maintaining a high correlation to the HFRI Fund of Funds Composite Index and low correlation to traditional financial market indices. In addition, investors have the opportunity to increase their portfolio allocations to alternative investments without compromising liquidity.
The fund was unveiled on the flat-fee variable annuity platform of Jefferson National on 15 June 2012. It is the only multi-strategy, multi-manager alternative option available on Jefferson National’s flat-fee variable annuity platform.
"We believe alternative investment strategies provide higher levels of diversification and risk mitigation than traditional strategies, especially during volatile market environments, but some investors and advisors find the taxes to be an obstacle," says Robert Worthington (pictured), president of Hatteras. "Hatteras and Jefferson National have removed this obstacle by offering a daily liquid, multi-strategy, multi-manager alternative fund within a tax-deferred variable annuity."
The fund’s strategies are similar to the USD476m Hatteras Alpha Hedged Strategies Fund, a mutual fund which will celebrate its 10-year anniversary on 23 September 2012.
"Our surveys indicate that nearly two-thirds of advisors believe alternative investments will become more important than their traditional counterparts. The partnership with Hatteras furthers our commitment to provide the broadest selection of tax-deferred alternative investment solutions to fee-based advisors and their clients, as well as offer strategies to improve alternative investment performance," says Laurence Greenberg, president of Jefferson National. "By combining Jefferson National’s low-cost approach to tax deferral with Hatteras’ expertise in the management and delivery of unique alternative investment solutions, we can help advisors and their clients obtain the benefits of greater diversification, flexibility and liquidity without many of the inherent tax inefficiencies associated with other alternative investments."