Fidelity Investments launched two "event-driven" mutual funds, the latest foray by the firm into a sector traditionally dominated by hedge funds.

The launch on Wednesday of the Fidelity Event Driven Opportunities Fund and Fidelity Advisor Event Driven Opportunities Fund comes as alternative funds continue to pull in a record amount of investor cash. This year through November, alternative funds have taken in $88.55 billion, according to research firm Morningstar, up from $18.34 billion in all of last year.