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August 12, 2002 at 08:00 PM
SAN FRANCISCO (HedgeWorld.com)–Charles Schwab & Co. Inc. has begun selling a mutual fund that looks more like a hedge fund.
The Schwab Hedged Equity Fund is being sold as a retail version of a hedge fund, offering equity long/short investing, the possibility of leverage and a minimum investment of US$25,000.
The fund joins a growing list of public and private closed-end funds and mutual funds that cater to individual investors who want hedge fund-like performance but may not have US$1 million to invest in them.
The Schwab mutual fund is separate from its hedge fund choices offered in private placements, said Lance Berg, a Schwab spokesman. He declined to discuss them. The Schwab fund is available to anyone, though Mr. Berg said that Schwab recommends investors buy into the new fund only if they have US$250,000 in investable assets.
The fund will be managed by Robin Jackson, senior vice president for Schwab Capital Markets LP, and Elie Spiesel, vice president, electronic trading, both of whom joined Schwab when it bought the hedge fund firm Bunker Capital Management LLC in 2001. They’ll be making long and short trading decisions using Schwab’s A through F stock rating system and will be overseen by Geri Hom, vice president and senior portfolio manager for Charles Schwab Investment Management Inc. The fund will invest in about 200 equities at a time managed with optimization techniques.
