Roosevelt brings in fixed-income vet to take it into bonds

If you need another sign that investors are completely spooked by the stock market, consider this: The Roosevelt Investment Group Inc., a $5 billion asset management and advisory firm known for its hefty stock allocations, is moving into the fixed-income space. The firm, which is currently 95% exposed to equity investments, has brought on veteran fixed-income manager Howard Potter to head up a push into the high-quality-bond space. Mr. Potter joined Roosevelt last week after 15 years with Capstone Asset Management, where he managed more than $1 billion in fixed-income assets.

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“I have a very traditional low-risk approach to investing in fixed income,” he said. “It's not just about an asset allocation program anymore, because more and more fixed-income investors are becoming more income-oriented.” At Roosevelt, where 80% of the business is done through financial advisers, the fixed-income expansion is in response to a growing appetite for income-oriented strategies, according to Adam Sheer, president. The bulk of Roosevelt's asset management is in the form of separate accounts, but the company also has a $155 million equity fund, Roosevelt Multi Cap Ticker:(BULLX), and last month, it launched the fixed-income fund, Roosevelt Strategic Income Ticker:(RSTIX). “Based on the demand we're hearing from clients, the world is focusing on income as well as the capacity for appreciation,” said Jim Rogers, head of sales at Roosevelt. Mr. Sheer said the long-range plans will be to launch more fixed-income mutual funds, some of which are already being incubated as separately managed accounts. Email Jeff Benjamin at [email protected]