A quartet of multimillionaires has teamed up to invest in a new hedge fund. But they aren’t just any multimillionaires: They’ve also teamed up on the baseball diamond.
The New York Yankees during the 2003 playoffs, with Jorge Posada at back (with arms extended) and Alfonso Soriano at far right.The foursome—Jose Contreras of the Chicago White Sox, Orlando Hernandez of the New York Mets, Jorge Posada of the New York Yankees and Alfonso Soriano of the Chicago Cubs—are backing Quantum Hedge Fund Strategies, a new hedge fund launched by their financial advisers. The four ballplayers were teammates on the 2003 American League champion New York Yankees.
According to a Securities and Exchange Commission filing by managers Juan Collar and Anthony, the players are beneficial owners of the hedge fund, meaning they’ve each plunked $6 million into the venture. In an interview, Collar and Fernandez, Merrill Lynch veterans who founded Miami-based Quantum Family Office Group in 2005, said that they’re targeting other baseball players hoping to raise as much as $60 million for their fund. Quantum is unaffiliated with the George Soros-founded hedge fund group with a similar name.
Collar said the new fund, which primarily invests in fixed-income securities, will employ technical trading and invest in other funds as well.
Professional athletes, with their enormous salaries, have shown an increasing interest in investing. Last year, the SEC charged Kirk Wright, an Atlanta-based hedge fund manager who counted a number of current and former National Football League players as clients and employees, with defrauding those very same clients. The scandal led to a flurry of lawsuits filed by players against the NFL and their own union.