Despite the success in landing the account of the $16.4 billion Virginia Retirement System for Glenwood Financial Financial Group/Centurion Trust Co., Douglas A. Steger has quit the Chicago-based registered investment adviser of alternative portfolio strategies to form his own company.
Even with Glenwood/Centurion's marketing and performance success with the Virginia account, recently increased to about $130 million, Mr. Steger said, "There still isn't a huge wave of institutions going into managed futures. From a business standpoint, I need more shots at scoring."
The Virginia system is one of the biggest institutional investors in managed futures.
"My leaving is a positive move. I wanted to diversify myself," he said. "In other words, there are more opportunities for me to represent the innovative traders of the world, than to work years to convince (pensions) boards of trustees that managed futures is the way to go to improve diversification. Hedge funds are getting more notoriety.
"The hedge fund and CTA (commodity trading adviser) business is merging, because a lot of hedge fund managers are CTAs because they do a lot of their trading through futures. A lot of the strategies are executed through the futures markets."
Mr. Steger, who was Glenwood/Centurion vice president-marketing, has started American Capital Financial Corp., Chicago. As the lone employee so far of the new firm, he will represent hedge-fund managers and CTAs to market their services to the institutional marketplace.
American Capital's first client is Minnisink Partners, a global hedge fund based in Florham Park, N.J., Mr. Steger said.
Glenwood/Centurion won't replace Mr. Steger, said Ronald J. Surz, its marketing consultant. Instead, it will contract with Larry Klotz, a founder and former head of marketing of Dimensional Fund Advisors Inc., Santa Monica, Calif., who is now the principal of Larry Klotz & Associates Inc., New Buffalo, Mich., as a marketing representative, who will work with Mr. Surz.
- Barry B. Burr