Invesco Plans Aggressive Offering That Looks a Lot Like a Hedge Fund

Later this month, no-load Invesco will pitch a high-octane, hedge fund -like stock fund, run by a former hedge fund manager and sold through brokers.

The Invesco Advantage fund, set to launch following a July 24 to Aug. 24 subscription period, will invest in the fastest-growing companies within the economy's fastest-growing industries, according to paperwork filed with the Securities and Exchange Commission. The concentrated, all-cap growth fund's strategies and pricing structure make it look a lot like hedge funds, the largely unregulated funds for wealthy individuals and institutions. The fund, Invesco's first to levy sales charges or loads , highlights investors' growing demand for aggressive strategies.

"They're bringing hedge fund investing to the consumer level," says Jim Folwell, an analyst with Boston fund consultancy Cerulli Associates. "I think it's indicative of increasing investor appetite for aggressive investments. People are perfectly willing to take that kind of risk now, even with the recent volatility we've seen." ...