“Because of EIG’s quantitative expertise, our absolute return strategies serve as a logical product extension of existing capabilities. Our quantitative models used for long-only strategies are forecasting alphas for the entire benchmark universe.   But long-only constraints have restricted our manager’s ability to fully capitalize on our research. Through shorting, Absolute Return strategies will allow our portfolio managers to maximize EIG research capabilities,” said Tony Elavia, senior managing director and chief investment officer, NYLIM Equity Investors Group. 

Led by Elavia, EIG has consistently provided the marketplace proven investment talent, quantitative investment process and a strong track record.  With the help of NYLIM’s institutional sales infrastructure, EIG has experienced tremendous growth in the past two years with assets under management doubling from $7.8 billion to $14.7 billion [1] in just 24 months.

“This is an organic build-out leveraging the exceptional talent and proven processes that already are thriving within EIG,” said Elavia.

For example, Harvey Fram who leads EIG’s successful large cap enhanced investment team, now runs a US core market neutral strategy and will soon introduce a 130/30 strategy. In addition, Luke Smith, who joined EIG earlier this year to head EIG’s international quantitative equity investment team, runs a European and Asian market neutral strategy with plans to introduce 130/30 strategies as well.

Since the bull market of the 1990s, institutional investors have struggled to meet their required return benchmarks using “long-only” strategies.  Institutions are actively seeking products that gain 8-10% return with “bond-like” volatility.  According to Casey, Quirk & Associates [2] , global institutional capital in hedge funds are predicted to increase from around $360 billion to more than $1 Trillion in 2010.

“Because of the growing challenge to meet required returns with long-only products, our institutional clients have asked us to incorporate alternatively enhanced strategies into the EIG product suite. As these vehicles become main stream over the next 3-5 years, our growth, relevancy to our clients, and ability to attract and retain top professionals will be greatly enhanced by having a strong presence in this asset class,” concluded Brian Murdock, president and chief executive officer, New York Life Investment Management.

With over $228 billion in assets under management as of September 30, 2006, New York Life Investment Management (NYLIM) and its affiliates provide investment management and related services to a wide range of individual, corporate, public, and Taft-Hartley clients.  NYLIM offers institutional asset management, retail investments, retirement plan services, guaranteed products, real estate investments, and alternative investments.  For more information, visit NYLIM’s website at www.nylim.com.  

Media Contact:

John Puccio
New York Life Investment Management LLC
john_puccio@nylim.com
(212) 576-8172   

Scott Tangney
Makovsky + Co.
stangney@makovsky.com
(212) 508-9661

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