The asset management division of Credit Suisse has rolled out a new fund seeking to give investors a liquid alternative way of accessing hedge fund-like returns.

“Hedge funds offer the potential to improve diversification and reduce correlation and portfolio volatility; however, investors needing access to capital are often constrained by hedge funds’ illiquid nature, and the process for investing in offshore vehicles can be tax restrictive, lengthy and expensive,” said Jordan Drachman, research chief in Credit Suisse's alternative beta strategies team.

The Credit Suisse Liquid Alternative Fund forms a part of a growing range of alternative funds at the Swiss bank. Robert Alderman, head of retail distribution for Credit Suisse Asset Management in the Americas, said that the firm considers alternative investments to be a key component of well-diversified portfolios.