NU Online News Service, Mar. 7, 12:15 p.m. – So what is a traditional investment advisor like Phoenix Investment Partners Ltd., Hartford, doing teaming up with a hedge fund advisory firm like LJH Global Investments LLC, Naples, Fla.?
Making hedge fund choices available to the ordinary individual investor, according to Donnell Segalas, chief marketing officer in the Phoenix alternative investment division
“Most people simply don’t have the skills, contacts, requisite information sources to do proper due diligence on hedge funds,” Segalas says. But “we think, if properly positioned in the alternative allocation of one’s portfolio, hedge funds can make sense.”
Phoenix, a unit of The Phoenix Companies Inc., announced plans earlier this week to expand hedge fund access by working with LJH to develop a “registered fund of hedge funds,” which will have much more flexible investor requirements than the typical hedge fund.
A hedge fund is a fund that buys unusual types of assets, such as distressed securities; adopts unusual investment strategies, such as hedging against market downturns; or makes heavy use of swaps, derivatives and other sophisticated financial tools, according to the Hedge Fund Association, Washington.