US hedge fund giant Paulson & Co is launching a new fund allowing retail investors access to its investment strategies, the Financial Times reports.

The UCITS fund will launch later this year, according to unnamed sources, in the footsteps of similar initiatives from European hedge fund managers.

There has been increasing US interest in such funds, which are regulated under EU rules and thus exempt from new regulatory moves aimed at hedge fund managers currently being considered by the EU.

A number of fund management groups, including those managing hedge funds, have rolled out UCITS-compliant vehicles offering absolute returns, sometimes known as "hedge fund lite" products. They are attractive to cautious investors as they offer high levels of liquidity and transparency. Some industry commentators have warned, however, that investors should scrutinise such funds to ensure they can deliver on their promises.

The new Paulson fund will be launched with Deutsche Bank; neither Paulson & Co nor Deutsche Bank would comment to the FT.