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New York (HedgeCo.net) – The Dreyfus Corporation, part of BNY Mellon Asset Management, announced the introduction of the Dreyfus Satellite Alpha Fund and the Dreyfus Diversified Global Fund.
“Many individual investors are seeking a professionally managed solution that enables them to invest in non-traditional asset classes that have low correlations to traditional asset classes, especially in the wake of the recent financial crisis,” said Phil Maisano, Vice Chairman and Chief Investment Officer for Dreyfus and Chief Investment Strategist for BNY Mellon Asset Management. “Dreyfus Satellite Alpha has been constructed within a 1940-Act platform to provide exposure to non-traditional asset classes such as commodities, currencies and real estate in addition to inflation-protected securities and global stocks and bonds.
“Dreyfus Diversified Global fund is distinctive among global funds; the underlying funds are managed by an array of BNY Mellon Asset Management affiliates with different points of view and investment philosophies which differentiate this fund from other global funds that only deliver a single viewpoint,” Maisano said.
The Dreyfus Corporation, established in 1951 and headquartered in New York City, is one a leading asset management and distribution company, currently managing more than $400 billion in mutual funds and separately managed accounts.
BNY Mellon Asset Management is the umbrella organization for BNY Mellon’s affiliated investment management firms and global distribution companies.
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The Modesto Bee – The tantalizing climb in the stock market has made hedge fund and mutual fund managers increasingly courageous, but millions of investors with 401(k) accounts remain reluctant to trust what burned them.
That could hurt them, and the market as a whole.
Some individual investors clutched the money they had left after the market plunged more than 50 percent from October 2007 until March and stopped adding to stock funds. A recent study found about 6 percent stopped contributing to 401(k) plans altogether as they blamed workplace retirement savings plans, rather than the investments within the 401(k) plans, for losses.
The Guardian – The BIS said the retreat from riskier investments such as stocks in favour of safer bonds could pressure stock markets, delaying their recovery. "Similarly, the decline in the pension wealth of households participating in defined contribution plans and of employers sponsoring defined benefit plans has implications for aggregate spending," the BIS said.
Hedge funds did not play a central role in shaping the crisis but they will feel its impact, the BIS said.
After many wealthy individual investors withdrew, the funds are targeting institutions.
"Such a shift engenders demands for greater transparency about the investment strategy and greater scrutiny of risk management processes," the BIS said.
Reuters – Sheila Bair, chairman of the Federal Deposit Insurance Corp, is in New York on Friday to meet with hedge funds, private equity funds and pension groups to promote the government’s plan to cleanse banks’ balance sheets of toxic assets, a source familiar with the meeting said on Friday.
Bair has said she would like all types of investors to participate in the Public-Private Investment Partnership PPIP.L, including private equity groups and individual investors.
CNNMoney.com – In what looks like a sign of the hard times in the hedge fund world, AQR Capital Management – one of the industry’s biggest names – is opening its doors to the retail market.
In January, the investment management firm launched its Diversified Arbitrage Fund, its first mutual fund. Its Class I shares are up just 0.15% through the end of February, but that doesn’t look so bad compared with the S&P 500, which dropped 12.5% during the same period.
AQR says it wants to give average investors access to strategies that were once only available to hedge fund clients. While the fund may not be designed as a main holding, David Kabiller, co-founder of AQR with Cliff Asness, John Liew and Robert Krail says it can help individual investors balance out their portfolios.
Reuters – Hedge fund founder Ezra Merkin is being cooperative with New York state’s top legal officer in its investigation of three funds as part of the probe into accused swindler Bernard Madoff, officials said on Wednesday.
New York Attorney General Andrew Cuomo is seeking information from Merkin and his Gabriel Capital Corp, Ariel Fund Ltd and Ascot Partners funds, Cuomo’s office said last month.
All of the funds have been sued by nonprofits and individual investors who accuse them of investing with Madoff without their knowledge.
Chicago Tribune – Strong returns are a mixed blessing this year for investment funds that specialize in trading futures contracts.
While the stock market plunged about 35 percent, managed futures funds posted annual returns of about 16 percent, according to the Credit Suisse Tremont Hedge Fund Index.
That makes them one of the few havens for investors at a time when pensions, retirement savings and even prominent local hedge funds such as Citadel Investment Group and Magnetar Capital LLC have recorded big losses.
But the success of managed futures has also left them vulnerable to client withdrawals. Because market turmoil froze the assets in many portfolios, some institutional and individual investors are pulling money from managed futures.
