New Star Asset Management Group plans to list a company on London's Alternative Investment Market that will invest in hedge funds, aiming to appeal to institutional investors and wealthy individuals. New Star said the listed fund will target returns of 6 per cent to 10 per cent over Libor, and should provide diversification across approximately 40 industry sectors and 500 individual positions. It will invest solely in nine hedge funds run by New Star, which the firm said in aggregate have made a compound annual return of 13.5 per cent in the three years to May 31. New Star is one of many investment firms, including Goldman Sachs, London-listed hedge fund manager RAB Capital, and Swiss private bank EFG International, that are offering this route into hedge funds for small pension funds and high net worth individuals. These types of exchange-traded companies present an accessible way for investors to get access to alternatives without a hefty minimum investment and lock-up of their money for a year or more. The initial minimum investment in the New Star fund is £37,500, but investors will be able to buy as many or as few shares as they like once the shares trade in the secondary market. The share placing closes on July 21. New Star has $2.2 billion in hedge fund assets, including about $600 million in a fund that also invests in New Star hedge funds.