Boston Business Journal – The mutual fund industry is quietly building a multi-billion-dollar business around its “big money” clients, rolling out a handful of products — hedge funds and other “private” investment pools — that often require minimum antes of around $1 million a pop, according to regulatory filings made public under new federal disclosure regulations.
The strategy shift has been particularly acute in Boston, as dozens of these so-called private funds are managed and sold throughout the city’s renowned investment community. Fidelity Investments, MFS Investment Management, Wellington Management Co., Pioneer Investment Management Inc., Putnam Investments and State Street Corp. (NYSE: STT) are but a few of the more prominent names to have jumped into the game.
At Eaton Vance Corp. (NYSE: EV), private funds represented roughly 21 percent, or $20.9 billion, of the firm’s $101.5 billion in assets under management as of Oct. 31. The Boston company’s private fund assets were up by around $5 billion, or 31 percent, from the $16 billion at the end of fiscal 2003, according to SEC filings.
Meanwhile, Evergreen Investments manages around $1.2 billion via its private fund group, Evergreen Alternative Investment Strategies. Among its largest products is its Hedged Equities, Super Accredited LP fund, which manages $260 million in assets and requires investors to pony up at least $250,000.
