HedgeWorld.com will launch HedgeWorld FundSelect, the first online “supermarket” for hedge funds, in the first quarter 2001. The new product offers accredited investors a single destination designed to facilitate transactions in hedge fund products.
The service will provide accredited investors and their intermediaries with a single point of access to a variety of selected domestic and international hedge fund products. In addition to providing seamless access to third-party offerings, the supermarket will also provide accredited investors with advanced analytical tools and ancillary services and solutions designed to meet the distinct needs of accredited investors and their intermediaries, regardless of their level of sophistication.
“The development of HedgeWorld FundSelect is a direct result of the structural supply and demand constraints that face the industry today,” says Johann Wong, president and founder of HedgeWorld.com. “Within the global asset management industry, the hedge fund marketplace is often described as fragmented and highly inefficient. We will leverage off of our existing market leadership position in content creation, content aggregation and industry specific electronic commerce initiatives to provide a total investor solution.”
HedgeWorld.com will offer accredited investors access to the secure, password protected HedgeWorld FundSelect platform, making it easier and more cost-effective to conduct research and due diligence on managers, as well as provide an ability to buy and sell hedge fund products directly online, officials say.
By integrating the supermarket into HedgeWorld.com’s existing product offerings, including the HedgeTrust Exchange (HTX), the first secure online trading facility for non-US domiciled hedge funds available through a regulated exchange, HedgeWorld.com promises to create an end-to-end total solution for accredited investors.
The platform is being developed in conjunction with several strategic partners, including Tremont Advisers, a provider of information, consulting services and investment products to the hedge fund industry. Tremont currently allocates more than $7 billion a year to hedge fund managers on a discretionary and non-discretionary basis. Tremont is a strategic partner and minority investor in HedgeWorld.com.
“Many mutual fund supermarkets exist today that provide a combination of a funds trading platform with the necessary fund performance information and screening tools which allow investors to buy and sell funds directly online,” says Steven Vestbirk and Jeff Joseph, co-managing directors of FITX Capital Markets, the financial services affiliate of HedgeWorld.com. “We look at HedgeWorld FundSelect as a natural evolutionary step as the traditional and alternative investment industries continue to converge. The result will be a more compelling way for accredited investors and qualified intermediaries to access the essential industry quantitative and qualitative data necessary to invest in hedge funds, as well as the substantial delivery of new client assets to hedge fund managers.”
HedgeWorld.com, which launched in September of 1999, claims to be the first e-commerce-enabled Web site serving the needs of the global hedge fund and alternative investment industry. HedgeWorld.com is the exclusive Internet distributor of the TASS+ database, a leading hedge fund and CTA performance database.
Through HedgeWorld.com, registered accredited investors can access detailed fund profile reports with more than 350 data fields of information on 2,200 hedge funds managed by more than 1,300 managers.
The site also carries daily industry news coverage and online tools for fund managers and service providers. HedgeWorld.com is also the exclusive provider of HedgeTrust Exchange, a secure online platform for trading non-US domiciled hedge funds via a regulated exchange. HedgeWorld Limited, a tax-exempt Bermuda-based company, owns HedgeWorld.com.