A retail-focused Franklin Templeton hedge fund strategy has become the fastest growing fund over the last five years.
The Franklin K2 Alternative Strategies Fund has brought in $1.3 billion since its inception in 2013, Reuters reports. The fund allows investors to start with an initial investment as little as $1,000 in the U.S., and $5,000 elsewhere. Traditional hedge funds usually require a minimum investment around $100,000. The fund then invests in positions advised by hedge funds. Writes Reuters:
“Although K2 has been investing in hedge funds for over 20 years, we have seen a growing level of demand, especially since 2008, for alternative investment opportunities particularly in a more daily liquid format,” David Saunders, founding managing director of K2 Advisors, a unit of Franklin Templeton, said.
The fund has a flat fee, with no additional performance fee, and offers a daily liquidity option.
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