The Hartford Expects Some Lower Results

Posted by Hartford Courant

Hartford Financial Services Group Inc. said Monday that worsening hedge fund results will reduce yields on its so-called alternative investments by at least half in the third quarter.

Returns on about $2 billion in hedge funds and private equity investments will fall to 'low single digits, at best' in the period ending Sept. 30, the company said. The assets, 2.1 percent of the company's holdings, returned about 20 percent in the second quarter, said Chief Financial Officer David Johnson.

The Hartford's hedge fund returns are 'broadly representative' of the industry's results, Johnson said. Hedge funds had their worst monthly performance in more than a year in August, according to Chicago-based Hedge Fund Research Inc.