Goldman Sachs has set the pace for a new class of retail products by launching a mutual fund-of-hedge funds that can be had for as little as $1,000. Several investment banks are ramping up copycat funds to compete with the Goldman Sachs Multi-ManagerAlternatives Fund (OTC: GMAMX) which was introduced in May.

GMAMX bestows exposure to long/short equity, event-driven trading, relative value arbitrage and opportunistic credit trading for an annual fee, depending upon the class selected, between 215 and 300 basis points.  The fund lost 1.9 percent in June compared to a 1.5 percent decline in the S&P 500.

The word on the Street is that Merrill Lynch and UBS will be the next market entrants.