Hartford Eyes $2.5B Increase In Hedge Fund, Private Equity Investments

Sep 23 2011 | 11:21am ET

A major insurer is turning to alternative investments to do what bonds can't in this low interest-rate environment: boost returns.

The Hartford Financial Services Group plans to double its hedge fund and private equity investments, Bloomberg News reports. The firm will increase its alternative investments allocation from 2% to 4% over time, a jump of more than $2.5 billion based on the Hartford's $132 billion portfolio.

"We're taking cash and maturing bonds and we're starting to move those selectively into a variety of different alternative-asset vehicles," Gregory McGreevy, chief investment officer, said.

"We're attempting to put together a portfolio that's going to provide very solid returns under a variety of different market conditions."

McGreevy added that the Hartford may increase its alternatives bets even further that the planned doubling, depending on market conditions.

The insurer said it favors discretionary global and long/short hedge funds. On the private equity side, McGreevy said the Hartford would shy away from the largest funds in the industry, favoring middle-market funds.


In Depth

Q&A: Jeff Eaton Talks Capital Raising, CalPERS And The Secondaries Market

Oct 14 2014 | 10:16am ET

Global placement agent Eaton Partners has raised close to $60 billion for some of...

Lifestyle

MacDonald-Korth Offers Insights Into Paintings Bought, Sold By Hedgies

Oct 7 2014 | 9:00am ET

Definitive and complete ratings require an in-person examination of an artwork,...

Guest Contributor

PAAMCO: European Equity Exposure - Challenging Year, But All is Not Lost

Oct 16 2014 | 4:12am ET

European equity hedge fund managers have had a tough time so far this year. The...

 

Videos

Editor's Note

    Must Attend Hedge Fund Charity Events For October

    Sep 30 2014 | 9:29am ET

    The crisp Autumnal days of October are upon us, and so are a few of the hedge fund industry’s favorite charitable events. If you have never been to Rocktoberfest, well, you are missing out. And for a quieter evening of sipping and socializing, stop by HFC’s Wine Soiree. Read more…

 

Futures Magazine

October 2014 Cover

Deeply flawed risk benchmark

Most traders agree that proper risk management is the key to successful trading. However, many traders depend on the deeply flawed measure of standard deviation as a benchmark of risk. Here we put it ...

The Alpha Pages

TAP July/August 2014 Cover

The Alpha Pages Interview: Senator Rand Paul

Senator Paul sat down in the debut series of the Alpha Pages Interview to discuss the broken tax code, regulation surrounding Bitcoin, and his plans for the 2016 Presidential election.