Portfolio Manager Perspectives

Jeff Benjamin

Shift to alts: Fund offers wealthy clients easy access to hedgies

Private Advisors Alternative Strategies Master Fund invests directly in dozens of hedge funds

Nov 16, 2012 @ 3:46 pm

By Jeff Benjamin

MainStay Investments is moving a little deeper into the alternative investments space with its new fund of hedge funds tailored to financial advisers with wealthier clients, as well as to smaller institutional accounts.

The Private Advisors Alternative Strategies Master Fund invests directly in more than two dozen individual hedge funds and is structured as a continuously offered closed-end fund.

MainStay, a New York Life Investment Management LLC company, manages $52 billion across 60 funds, but over the past few years, the company has undertaken a gradual move into the alternatives space; it now offers five such products.

“In terms of alternative investments, we're looking at other areas of opportunity, and I think you'll hear more from us in the coming year,” said Stephen Fisher, MainStay Funds' president.

Last month, MainStay announced that it had absorbed the $3.4 billion Marketfield Fund Ticker:(MFLDX) from Marketfield Asset Management LLC.

The long/short equity fund has been renamed MainStay Marketfield.

The newest alternative product will tap the expertise of New York Life affiliate Private Advisors LLC, which has $4.5 billion under management in hedge fund and private-equity portfolios.

“We're trying to deliver a diversified portfolio of fundamentally oriented hedge funds,” said portfolio manager and Private Advisors partner Chris Mackay.

The fund has a $50,000 minimum and is limited to accredited investors.

According to the prospectus, the fund will be managed in line with an existing strategy that has been managed by Private Advisors since 2003.

The prospectus shows that the strategy gained 5.6% this year through September, which compares with a 3.3% gain by the HFRI Fund of Funds Diversified Index.

On a three-year annualized basis, the strategy gained 4.9%, while the index gained 1.7%.

Portfolio Manager Perspectives are regular interviews with some of the most respected and influential fund managers in the investment industry. Please visit InvestmentNews.com/pmperspectives for more information.

0
Comments

What do you think?

View comments

Most watched

INTV

Young advisers envision a radically different business in five years

Fintech and sustainable investing are two factors being watched closely by some of the 2019 class of InvestmentNews' 40 Under 40.

INTV

Schwab's Jeff Kleintop: Prep for volatility given China trade uncertainties

China could be considered a developed market in five to seven years , according to Jeff Kleintop, chief global investment strategist, Charles Schwab.

Latest news & opinion

TIAA exits the life insurance business

The move is a big deal for RIAs, experts say, since TIAA was one of only a few insurers to offer fee-only life policies.

Advisers step up efforts to help clients manage student loan debt

As some Democrats campaign to wipe the slate clean, financial planners focus on limiting the amount students borrow.

Funding for Reg BI, other SEC advice reform efforts denied in Waters amendment

House likely to approve measure that effectively kills rule package, but it faces uphill battle in Senate

Wall Street lashes out at Sanders' plan to pay off student debt with a securities trading tax

Financial pros argue that a transaction levy will hurt mom-and-pop investors along with investment houses.

GPB paid B-Ds and reps steep commissions to sell troubled private placements

GPB paid commissions of 9.3%, or $167 million altogether, on the firm's private placements.

X

Hi! Glad you're here and we hope you like all the great work we do here at InvestmentNews. But what we do is expensive and is funded in part by our sponsors. So won't you show our sponsors a little love by whitelisting investmentnews.com? It'll help us continue to serve you.

Yes, show me how to whitelist investmentnews.com

Ad blocker detected. Please whitelist us or give premium a try.

X

Subscribe and Save 60%

Premium Access
Print + Digital

Learn more
Subscribe to Print