The asset management arm of Nationwide Financial Services announced recently that it will join the ranks of mutual fund companies offering hedge funds.
Villanova Capital, the US-based asset management arm of Nationwide Financial Services Inc, announced recently that it will be launching several new hedge funds within the next six months, joining the growing number of mutual fund companies offering hedge funds in an attempt to raise assets.
Villanova, established in February 1999, currently oversees 32 retail mutual funds for Nationwide, with assets totalling almost $24 billion. Jim Donatell, the company's executive vice president of distribution and marketing believes that due to the sector's encouraging performance last year, the time is right for Villanova to make the move into hedge funds, explaining: 'In the fourth quarter of 2000, if you only had a long strategy, you were down. But a long/short strategy yielded positive returns.'
The company has indicated that the funds will probably focus on the global healthcare and global technology arenas, but no decision has been made as yet on the target audience for the funds, or the minimums for the portfolios. The hedge fund offering forms part of a plan to build a major fund management group offering a range of products including sector funds, focus funds, and international funds, as well as the more traditional products.
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