Baseball Players Seed New Fixed-Income Hedge Fund

Oct 15 2007 | 12:05pm ET

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 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.


In Depth

Q&A: Neil Azous Talks Global Macro Investing

Nov 24 2014 | 12:41pm ET

Neil Azous is the founder and managing member of Rareview Macro, an advisory firm...

Lifestyle

Griffin Selling Chicago Apartment

Nov 26 2014 | 11:40am ET

Citadel Investment Group’s Kenneth Griffin is making clear to his estranged wife...

Guest Contributor

Why The Big Money Is Going To Europe

Nov 14 2014 | 6:03am ET

Peer-to-peer lending was invented with the individual investor in mind. But despite...

 

Sponsored Content

    For Hedge Funds, Mastering Data Is Key To Success

    Nov 4 2014 | 9:45am ET

    Data management is important to every business, but for hedge funds, it is critical. FINalternatives recently asked Peter Sanchez, CEO of Northern Trust Hedge Fund Services, how fund managers can deal with the demands of managing data while at the same time remain transparent and abide by operational best practices. Read more…

Editor's Note

    Guidelines for Guest Articles

    Oct 22 2014 | 9:46am ET

    We are always looking for guest articles from hedge fund managers and buy-side firms.

    If you are interested in submitting a contributed piece for possible publication on FINalternatives, please take a look at the specs. Read more…

 

Futures Magazine

November 2014 Cover

Building a better market

Reg NMS created a huge bifurcation in equity markets and while much of what has followed has been positive, in terms of lower fees and greater liquidity, many traders would like to see the market come...

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.