Lenny Dykstra, investment guru? Advisers say, "Be leery, dude’

Less than nine months after filing for bankruptcy protection, former baseball star Lenny “Nails” Dykstra is back in the investment game.

The former Major League Baseball star is trying to get wealthy clients to back his stock-picking strategy. According to Mr. Dykstra’s website, he tries “to keep it simple and pick companies with good, solid fundamentals.” He said he targets companies with “solid historical and expected returns, good cash flow and low debt levels. I also watch for the operators on Wall Street to make a mistake and undervalue stock.”

So what do advisers think of taking investment advice from Nails? Many said they’re counting Mr. Dykstra’s personal bankruptcy as two strikes against him and would be leery about letting their own clients take investment coaching calls from him.

“Just because he’s good at baseball doesn’t mean he’s good at investments,” said Bert Whitehead, president of Cambridge Connection Inc., which manages $300 million.

Mr. Dykstra, a former Phillies and Mets star, auctioned off his 1986 World Series ring from the Mets to pay debts. He also went through a home foreclosure and faced more than 20 lawsuits.

He states on his website that he is not a registered financial adviser or stock broker. But he is charging investors $999 annually for three weekly forecasts, weekly updates and e-mails, access to his library, articles, a monthly conference call and a baseball signed by him.

Mr. Dykstra, owner of Nails Investments, also said his “proven track record has caught the attention of many, including the professional investors.”

Clifford Favrot, a certified financial planner with Delta Financial Advisors Inc., which manages $250 million in assets, is dubious. He said if his clients were interested in Mr. Dykstra’s approach, he wouldn’t immediately say no, but he would pose many questions.

“His intentions may be the best, but it doesn’t appear clear to me what training and experience he has,” Mr. Favrot said.

“His personal circumstances would suggest his investment expertise is less than what’s been put forward.”