BlackRock, the US investment management company, said on Tuesday it is planning to launch a London-listed closed-end fund of hedge funds. The product will give its holders exposure to its $11 billion Appreciation Strategy.

The fund of funds, 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. BlackRock declined to immediately offer further details on the product when asked by WealthBriefing for its reasons for launching the fund of hedge funds.

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 has told Reuters.

The new fund will invest in the Appreciation Strategy, which has a track record lasting for more than 12 years. This is the flagship strategy of BlackRock Alternative Advisors, which was formed last year.

There are a number of listed fund of hedge funds in London, Amsterdam and Switzerland, such as Dexion Absolute, a UK-listed fund of hedge funds.

A number of single funds and funds of hedge funds have listed in recent years, attracted by the ability to obtain permanent capital. Listed funds, which are required to regularly disclose their net asset value to the public markets, are also seen as potentially more appealing to investors who have not previously put money into the traditionally secretive hedge fund arena.