US-BASED automated peer-to-peer platform LendingRobot has launched a hedge fund to invest in loans from different lenders.
LendingRobot, which uses algorithms to help lenders automatically buy and sell P2P loans on US platforms, is now offering a hedge fund for wealthy investors.
The automated hedge fund will invest in P2P loans on Funding Circle, Lending Club and Prosper and use algorithms to automatically diversify and buy and sell based on a client’s risk attitude.
Read more: US P2P v UK P2P, A Tale of Two Countries
The fund is open only to accredited investors, which the Securities and Exchange Commission defines as those with individual incomes of $200,000 (£159,000), or joint annual incomes of $300,000.
“Alternative lending proved to return excellent performance and with new origination platforms growing quickly comes the opportunity to diversify further,” Emmanuel Marot, chief executive of LendingRobot told Reuters.
“But fragmentation makes investing even more complex for individual investors.”