Fidelity Jumps Into HF Game

Date: Thursday, September 27, 2007
Author: Hedge Fund Daily

Fidelity Investments’ U.S. institutional business is planning to build up a $20 billion hedge fund business over the next five years, according to Financial News. Fidelity’s Pyramis Global Advisors will kick off the expansion effort with the launch of four long-short funds before year-end. The strategies have been in the works for at least a year. “Our strategy here at Pyramis is to build a large platform to complement our long-only strategies with the view that [this] will have growing interest from the institutional market,” CIO Young Chin is quoted as saying. Pyramis has also launched its first 130/30 fund, which allows fund managers to short-sell up to 30% of their portfolio. MFS Investment Management, another ‘traditional manager,’ announced earlier this week that it had set up a new subsidiary to provide seed capital to hedge funds.