Hedge Funds

Wood Creek venture fund to invest in 'alternatives to alternatives'


A venture capital fund has recently been formed by Babson Capital and Norfolk Management Group that will seed startup hedge funds with unusual investment strategies.

"We won't have long/short equity or the typical mainstream strategies," says John Hellerman, CEO of Norfolk and Wood Creek Capital, the joint venture company created by Norfolk and Babson. "These will be funds with hard to classify strategies - things like hard assets, insurance, trade finance, leases, and intellectual property."

The venture fund recently closed, and capital raised will be used to buy equity stakes in startup managers and provide seed capital, said Hellerman, who