A hedge fund investment platform that will allow advisors to invest in hedge funds for their clients through separately managed accounts has been created by HedgeCoVest LLC, the firm announced Monday.
The new platform is being opened to the public after four years of testing.
HedgeCoVest, which has 1,500 beta users, offers advisors and retail investors real-time replication of hedge fund strategies directly into their brokerage accounts. It is designed to combine the liquidity, security and transparency of a separately managed account with the long-short investment strategies of hedge funds.
The platform provides real-time performance reporting, flat fees and the ability to allocate or liquidate at any time.
The platform also offers 14 custom HedgeCoVest investment products, including a real-time, investable hedge fund index. Investors can also create their own custom portfolio of hedge fund strategies based on their risk-return profile and investment objectives, HedgeCoVest says.
“The traditional limited partnership investing model is being disrupted,” comments Evan Rapoport, CEO of HedgeCoVest. “Until now, only ultra-high-net-worth investors and institutions had access to high-quality alternative investments. We believe all investors should be able to benefit from hedge fund strategies.”
HedgeCoVest has generated $80 million in capital for the platform and signed 45 investment management companies, including the multibillion-dollar firms Fred Alger, The Boston Company, Cornerstone, Kovitz and Sandell, HedgeCoVest says.
HedgeCoVest is operational with Interactive Brokers and is in the process of completing integration with Pershing Advisor Solutions and TD Ameritrade.