The Rock Creek Group, a $7 billion Washington-based fund of hedge funds manager, is in the process of setting up a mutual fund version of its product. The firm is partnering with Wells Fargo, which is buying a controlling stake in Rock Creek, to do so, people familiar with the matter tell MFWire. Wells Fargo will be assisting Rock Creek with retail distribution for the strategy. Spokesmen at both Wells Fargo and Rock Creek declined to comment.

Wells Fargo bought a 35 percent stake in Rock Creek at the end of last year and had the option to increase that stake to a controlling one later. Wells decided to exercise that right more recently and will increase the stake to 65 percent on April 1, said Stephen Labaton, a spokesman for Rock Creek.

Rock Creek would be an addition to a growing list of funds of funds firms that are setting up alternative mutual funds. Many are partnering with larger investment firms for retail distribution, as they tend to lack experience in selling to retail clients. The Blackstone Group, Arden Asset Management, and Goldman Sachs Asset Management are partnering with Fidelity, Aurora Investment Management is working with Natixis Global Asset Management , Morgan Creek Capital Management is linking arms with Northern Lights and K2 Advisors is joining forces with new parent firm Franklin Templeton Investments. 

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