Oppenheimer Introduces More Hedge Funds
OppenheimerFunds Inc. has launched a series of multimanager hedge funds for investors.
Called the Oppenheimer Tremont Hedge Fund Series, the products are designed and managed by an Oppenheimer affiliate, Tremont Partners Inc. The series now includes two funds: the Oppenheimer Tremont Market Neutral Fund, which seeks to generate long-term capital appreciation with bondlike volatility, and the Oppenheimer Tremont Opportunity Fund, which aims for equitylike absolute returns.
Hedge funds are growing increasingly popular, and more firms are introducing them. TASS Research, a Tremont investment subsidiary, estimates hedge funds took in more than $22 billion in new money during 2001, up from $8 billion in 2000.
The Oppenheimer Tremont products are using a "fund of funds" approach, meaning they will be allocated among different managers and/or strategies in an effort to diversify risk and decrease volatility. The minimum investment is $50,000. Only qualified investors–individuals or married couples with net worths of at least $1.5 million–may purchase the funds, which are closed-end investment companies with limited liquidity.
The funds carry a one-time sales charge of 2.5% (with a lower charge for larger investments). Annual management and administrative fees are 2.15% for the market neutral fund and 2.35% for the opportunity fund. The incentive allocation fee for the market neutral fund is 5% and 10% for the opportunity fund. That fee is paid to the investment advisor over and above a predetermined hurdle rate.
For more information, call (888) 470-0862.
MSC Adds Trust Services
Mutual Service Corp. (MSC), one of the nation‚s largest full-service independent broker-dealers, has added trust services for its representatives to help them build their practices.
Recently, MSC added trust services offered by Delaware‚s Wilmington Trust Co., which has more than $26 billion in total assets and is well-equipped to meet the needs of affluent clients with investments of $1 million and higher. The services are available through MSC‚s Web site for its representatives.
"Our team of product experts will leverage the electronic marketplace to efficiently build our representatives‚ practices by providing them with a one-stop address to obtain a host of established, industry-leading products and services," says Sheri Ryan, MSC‚s vice president and director of marketing services.
For more information, call the MSC New Business Development Department at (800)749-8900, ext. 3059.