BlackRock plans listed fund of hedge funds launch

LONDON (Reuters) - U.S. money manager BlackRock said on Tuesday it is planning to launch a London-listed closed-end fund of hedge funds that will offer exposure to its $11 billion (5.5 billion pound) Appreciation Strategy.

BlackRock Absolute Return Strategies is expected to be launched during the first half of the year, subject to market conditions, the firm said in a note.

The fund is likely to be a multi-strategy fund similar to BlackRock's Qars 3 fund of hedge funds, an industry commentator familiar with the matter said.

The new fund will invest in the Appreciation Strategy, which has a 12-year-plus track record. This is the flagship strategy of BlackRock Alternative Advisors, which was formed last year after BlackRock bought the fund of funds business of Quellos Group.

BlackRock declined to say how much the new fund was planning to raise in assets.

Closed-end funds of hedge funds have been popular in recent years both with investors, who see it as a safer route to access hedge fund returns, and fund firms, who are attracted by permanent sources of capital.