Hedge Fund Strategies Seek Wider Clientele

For some time now, the distinction between hedge funds and some mutual funds has been waning. Two new offerings should help that process along.

Janus(JNS Quote), the Denver money manager with $148 billion under management, is preparing to launch the Janus Advisor Long/Short Fund this spring. Pending clearance from the Securities and Exchange Commission, the new fund would be permitted to make both bullish and bearish bets on stocks, a hallmark of hedge fund investing.

Separately, Morningstar, the mutual fund rating service, is readying a new category for mutual funds employing a significant percentage of short sales, another sign that the trend is gaining momentum. ...