HedgeWorld FundSelect will offer access to more US and non-US hedge funds than have previously been available on one web site. HedgeWorld.com aims to sign up around 30 to 40 hedge fund managers to allow accredited investors to use the site for research and buying funds. Hedge funds typically carry a minimum investment of US$1m, much higher than that for mutual funds, and results often vary wildly because their managers are allowed to use a whole gamut of strategies.

Commenting on the new platform, Johann Wong, President and Founder of HedgeWorld.com said: 'The development of HedgeWorld FundSelect is a direct result of the structural supply and demand constraints that face the industry today. Within the global asset management industry, the hedge fund marketplace is often described as fragmented and highly inefficient. We will leverage off of our existing market leadership position in content creation, content aggregation and industry specific electronic commerce initiatives to provide a total investor solution.'

HedgeWorld FundSelect is being developed in conjunction with several strategic partners, such as Tremont Advisers Inc, a US provider of information, consulting services and investment products to the hedge fund industry. Tremont plans to provide HedgeWorld.com with ancillary services not previously available online. Tremont's representatives intend to also participate on the manager selection committee to determine which hedge funds will qualify for eligibility in the supermarket.

Steven Vestbirk and Jeff Joseph, co-Managing Directors of FITX Capital Markets, the financial services affiliate of HedgeWorld.com, had this to say about the new venture: 'By creating this hedge fund supermarket, HedgeWorld.com will offer a customer experience that has no parallel in the alternative investment industry. This model has enjoyed extraordinary visibility and has successful parallels in the mutual fund industry. Many mutual fund supermarkets exist today that provide a combination of a funds trading platform with the necessary fund performance information and screening tools which allow investors to buy and sell funds directly online. We look at HedgeWorld FundSelect as a natural evolutionary step as the traditional and alternative investment industries continue to converge. The result will be a more compelling way for accredited investors and qualified intermediaries to access the essential industry quantitative and qualitative data necessary to invest in hedge funds, as well as the substantial delivery of new client assets to hedge fund managers.'

Mutual fund supermarkets are springing up with increasing frequency, but there is little precedent for a hedge fund equivalent, which is why several industry analysts prefer to err on the side of caution. Besides the higher cost of hedge funds, some hedge fund managers are sceptical as to whether investors will wish to invest such large sums over the Internet without meeting the hedge fund manager in person.