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Wellington Alternative Investments Review

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This review was produced by SmartAsset based on publicly available information. The named firm and its financial professionals have not reviewed, approved, or endorsed this review and are not responsible for its accuracy. Review content is produced by SmartAsset independently of any business relationships that might exist between SmartAsset and the named firm and its financial professionals, and firms and financial professionals having business relationships with SmartAsset receive no special treatment or consideration in SmartAsset’s reviews. This page contains links to SmartAsset’s financial advisor matching tool, which may or may not match you with the firm mentioned in this review or its financial professionals.

Wellington Alternative Investments is a fund management company based in Boston which manages a total of 113 pooled investment vehicles. The firm employees 14 advisors and manages a total of more than $46.46 billion across all of its funds. Though Wellington Alternative Investments focuses, naturally, on alternative investments, the parent company offers other options including private equity funds and wealth management. If you are interested in getting some help with your investment portfolio and aren’t sure a firm like Wellington is right for you -- especially if you aren't an accredited investor, generally, a requirement for investing in hedge funds -- consider working with a financial advisor, who can help you make the best choices for you and your family.

Wellington Alternative Investments Background

WAI is an indirect subsidiary of Wellington Management, a financial management firm based in Boston with more than $1 trillion in client assets.  WAI is also based in Boston. The firm was founded in 2010. It works with private investment funds and discretionary accounts. The firm also provides non-discretionary portfolio advisory services to public funds and large institutions.

Wellington Alternative Investments Investment Philosophy

WAI Multi-Strategy Funds, as the name suggests, combine strategic and active asset allocation models. Some of them focus on single asset classes while others employ a diversified approach to the types of investments made.

The firm uses both long and short investments -- meaning it both bets on securities it believes it will go up in value and on others it believes will go down in value. Stock shorting is a fairly complicated method of investing, but essentially it involves borrowing a set number of shares and selling them with the expectation that when it's time to return the set number of shares the price will have gone down, then buying the stock back after the price drops and profiting the difference between what the borrowed shares were sold for and what they are later purchased for.

In terms of private equity, the firm invests in various sectors including consumer, technology, healthcare and financial services.

Largest Hedge Funds Managed by Wellington Alternative Investments

Arrow Creek Investors

AUM: $7,980,055,170
Minimum: $1 million
Beneficial Owners: 1

Iguazu Master Investors

AUM: $4,806,719,344
Minimum: $1 million
Beneficial Owners: 136

Bay Pond Partners

AUM: $3,924,924,724
Minimum: $1 million
Beneficial Owners: 235

Hawkes Bay Master Investors

AUM: $2,650,348,396
Minimum: $1 million
Beneficial Owners: 1,046

US Research Equity Extended Master Fund

AUM: $2,392,920,399
Minimum: $1 million
Beneficial Owners: 58

Fees at Wellington Alternative Investments

WAI charges funds both asset-based fees and performance-based fees.  There is no standard fee table for asset-based fees, as the firm negotiates them based on circumstances, asset levels and other relevant factors.

Performance-based fees also vary, but in general they will be a percentage of the total net increase in the value of the fund or account.

What to Watch Out For

It’s important to remember that only accredited investors can invest in hedge funds. To become an accredited investor, you must have earned income of at least $200,000 ($300,000 for couples) in each of the previous two years (with the expectation that this will continue) or have a net worth of at least $1 million, not including your primary residence.

Though WAI doesn’t have any disclosures of its own, the affiliated Wellington Management Group does have a disclosure. It involves allegations from the Federal Department of Finance in Switzerland that Wellington did not file reports regarding ownership of a Swiss Security in the allotted time frame. WAI paid $7,000 to settle the matter.

Becoming a Client of Wellington Alternative Investments

The best way to become a client at Wellington is to call the office closest to your location. For a list of locations and contact information, see the firm’s page here.

All information is accurate as of the writing of this article.

Investing Tips

  • If you want help with investment, you should consider working with a financial advisor. Finding a financial advisor doesn’t have to be hard. SmartAsset’s free tool connects you with financial advisors in your area in five minutes. If you’re ready to be matched with local advisors, get started now.
  • Investments do come with increased tax burdens. To see what you’ll owe Uncle Sam on money made from investing, use SmartAsset’s capital gains tax calculator.
  • Though they are both frequently discussed in media and among financial professionals, there is a difference between hedge funds and mutual funds. Make sure you know which you’re interested in, and the pros and cons of each.

How Long $1mm Lasts in Retirement

SmartAsset's interactive map highlights places where $1 million will last the longest in retirement. Zoom between states and the national map to see the top spots in each region. Also, scroll over any city to learn about the cost of living in retirement for that location.

Rank City Housing Expenses Food Expenses Healthcare Expenses Utilities Expenses Transportation Expenses

Methodology We analyzed data on average expenditures for seniors, cost of living and investment returns to determine how many years of retirement a $1 million nest egg would cover in cities across America.

First, we looked at data from the Bureau of Labor Statistics (BLS) on the average annual expenditures of seniors. We then applied cost of living data from the Council for Community and Economic Research to adjust those national average spending levels based on the costs of each expense category (housing, food, healthcare, utilities, transportation and other) in each city. Using this data, SmartAsset calculated the average cost of living for retirees in the largest U.S. cities.

We assumed the $1 million would grow at a real return (interest minus inflation) of 2%. Then, we divided $1 million by the sum of each of those annual numbers to determine how long $1 million would cover retirement expenses in each of the cities in our study. Cities where $1 million lasted the longest ranked the highest in the study.

Sources: Bureau of Labor Statistics (BLS), Council for Community and Economic Research