Last fall’s sale of Lockwood Financial Group to Bank of New York Company is already paying off in new offerings for the Malvern, Pennsylvania-based separately managed account provider, says Lockwood Chairman Leonard A. (Len) Reinhart.
In an interview with Investment Advisor during the Money Management Institute’s annual meeting in New York Mar. 31, Reinhart disclosed that Lockwood had just added to its separate account platform a registered hedge fund of funds run by BONY subsidiary Ivy Asset Management. The no-load fund for high-net-worth investors will be aimed at fee-based advisors, who comprise 40% of Lockwood’s client roster, Reinhart said. It invests in 30 to 40 individual hedge funds and has had a low correlation to stock market returns. In about nine months, Reinhart expects to add a long-short hedge fund product. Then, “there will be other” hedge fund products on the platform down the road. “We are going to tread softly.” he said, but added that, “eventually, we want to have a universe of them.”
Reinhart is adding two other Bank of New York products to Lockwood’s menu. In addition to residential mortgages, Lockwood will also offer loans collateralized by securities in an investor’s portfolio. Reinhart says he sees strong demand for collateralized lending products among fee-based CPA firms.