Want to Invest in DE Shaw?

Most of the top hedge funds in the world are closed to new investors. Or, if they are open to investors the minimums are so high only the top echelon of the rich and institutions can access them.

However, what if I told you that you could invest in similar funds with no minimum, daily liquidity, AND you could do so at a 5% discount? You would be interested, right?

I have written fairly extensively on foreign listed hedge funds on this blog in the past. Here are profiles of Dexion Absolute, Marshall Wace, and Alternative Investment Strategies. These funds trade just like stocks, and are listed in London, Zurich, and Canada. If you are a professional investor you should check out the fine publications authored by Mark James at ABN AMRO, Alternatively and Alternatives Monthly.

Since the funds trade like closed-end funds do here in the US, they are susceptible to trading at premiums and discounts. As with all investment funds, don’t forget to pay attention to the fees! (Speaking of fees, check out this article on Superfund). Investors at such discount brokerages as Etrade and Interactive Brokers can access these funds.

If there are any readers globally that have experience with investing in listed hedge funds, feel free to drop a comment. And if anyone has a clue why no funds have listed yet in the US, let me know!

Below is a sample list of foreign listed hedge fund of funds with allocations to various top tier hedge funds.

Altin (Tudor, Drake, Paulson, Wellington)
Alternative (Renaissance, QVT)
Dexion (Ichan, Tiger, K2, Crabel)
Northwater (D.E. Shaw, Cerberus)
Goldman (Brevan Howard, DE Shaw, Och Ziff, Stark)