Goldman offers mutual fund based on hedge fund index

Goldman Sachs Asset Management has launched the Goldman Sachs Absolute Return Tracker (ART) Fund. The fund will try to achieve results that approximate the return of the Goldman Sachs ART Index, introduced in January 2007.

The GS-ART Index reflects the returns of a basket of long and short investable market factors determined by an algorithm to track patters of returns of hedge funds as a broad asset class.

The mutual fund will allow individual US investors access to the returns of the index. Previously the only way US investors could gain exposure to index was through a structured note or swap.

The fund gives investors the advantages of a hedge fund-like strategy with daily liquidity, pricing and periodic portfolio transparency.

“This is an investment option for investors seeking diversification relative to traditional asset classes and the potential for positive returns in a variety of market conditions. It can fit especially well in the ‘satellite’ portion of a core and satellite investment portfolio, where investors seek to reduce overall portfolio volatility by incorporating lower correlated exposures,” said Glen Casey, managing director and head of product development for US third party distribution at GSAM.