Mutual Fund Offers Investors Hedge Fund-style Investing

July 1, 2008 ( - IndexIQ has introduced a no-load, open-end mutual fund based on hedge fund replication designed to give investors access to hedge fund-like performance characteristics.

The IQ Alpha Hedge Strategy Fund uses a proprietary investment process to synthesize the risk and return profiles of a broad range of hedge fund investing strategies. The fund seeks to deliver hedge fund-like performance in a low cost, transparent, and highly liquid investment vehicle, according to a company announcement.

The IQ Alpha Hedge Strategy Fund attempts to generate total return that, before fees and expenses, corresponds to that of the IQ Alpha Hedge Index. The Index uses proprietary algorithms to closely replicate the returns of six major hedge fund strategies: Equity Long/Short; Global Macro; Emerging Markets; Fixed Income Arbitrage; Equity Market Neutral; and Event Driven.

In constructing the fund, IndexIQ uses exchange-traded funds (ETFs) and a variety of other highly liquid financial instruments to provide exposure to the components of the index in approximately the same weighting, the announcement said.

More information is at .