Wealth management firm Wealth Management Group has teamed up with the world’s top hedge fund to develop a “living” hedge fund that can take your investments in the stock market, ETFs and bonds, and then sell them at a profit to your bank.
The hedge fund, called LifeStrategy, will allow investors to own a portfolio of stocks that can be bought and sold by the bank or other financial institution, such as a brokerage.
The bank will own shares and the hedge fund will own the value of the investments, depending on the assets the hedge funds owns.
“The fund will allow you to buy and sell your investments at different prices and with different fees,” said Matthew Stumpf, co-founder and chief executive of Wealth Management.
“This is the future of investing.”
The fund is a joint venture between Wealth Management, a global hedge fund operator, and The LifeStrategic Fund, a UK-based fund manager.
The fund has been in development for a few years, but is not yet ready to launch.
“We’ve done a lot of research on the market,” said Mr Stumpfiets.
“We’ve seen a lot more growth and it’s going to be quite interesting to see how people react to this new product.”
The LifeStrategies portfolio has a total of more than US$3 trillion, which it is able to sell to financial institutions, according to the company.
The fund aims to offer investors the ability to own the stocks that are currently traded on the stock markets, ETFS, bonds and commodities markets, and it is also able to buy back shares at different valuations.
“We believe this is the next frontier in asset management and hedge funds,” said Wealth Management CEO Mark Hurd.
“In just the first few years of our business, we’ve seen this market take off, and we believe that with the new offering, we can continue to take advantage of the incredible opportunities it offers.”
The lifeStrategy fund will be based in London and will be owned by the London Stock Exchange (LSE).
It will be launched in the UK this year, but it will be available to investors worldwide.
“This is going to change the way people invest,” said Stumpfs co-chair of the board, John O’Sullivan.
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