The portfolio management consultancy has put a range of strategies to its platform and says more are likely. These are aimed at HNW investors and clients such as family offices.

Envestnet | PMC, the portfolio management consultancy of US financial technology and solutions firm Envestnet, says advisors – including family offices – now have access to a suite of three long/short hedge funds on its platform, and is targeting a total of six by the end of this year.

The strategies are AlphaHedge Habor Walk Long/Short (small-mid-cap, domestic in geographic bias); AlphaHedge Infinitas Long/Short, (Large-cap, global), and AlphaHedge ISF Long/Short (Large-cap, domestic).

The strategies are available through separately managed accounts, Envestnet|  PMC said in a statement.

"With market valuations reaching all-time highs, the timing couldn't be better for bringing institutional-quality, thoroughly vetted hedge fund strategies to financial advisors - at lower minimums and within products that are ideally designed for their clients," Bill Crager, president of Envestnet, said.

Most of the strategies require a minimum investment of $250,000, the firms said.

“High net worth and family office clients are generally the ideal clients for the AlphaHedge strategies. These are investors who have predominately utilized hedge funds/limited partnerships for their alternative investments exposure,” the firms later told this publication.

“Most large institutions have moved away from LPs in favor of managed accounts which provide control, transparency and liquidity the LP structure doesn't offer. Until now, because of high minimums, individual investors haven't had access to similar managed account solutions. AlphaHedge delivers transparency, liquidity and control for individual investors through their separately managed account structure. It's like having a long/short equity hedge fund deposited right into their brokerage account,” they said.

Fees include a 175 basis point management fee plus the customary custodial fees which will vary depending on financial planning firm and its custody relationship. There are no lock-ups, hold-backs or side pockets because the strategies are being delivered outside a limited partnership in the investors brokerage account.

At present, the investment minimums are $250,000 for a single manager strategy and $350,000 for a multi-manager portfolio.

“Three strategies have been on-boarded year-to-date with three more strategies currently going through the final stages of the due diligence process. The target is six active strategies by year-end,” the firms added.