Short Takes: Hibernia Investors Can Discuss Strategy

Executives at Hibernia National Bank are hoping that when it comes to investing, a little hand-holding can go a long way.

The New Orleans-based bank's four Tower Capital fund portfolio managers take telephone calls from brokers and investors who want to talk about the managers' investment strategies.

"What sets us apart is that local touch," said James McElroy, chief investment officer at the Hibernia Corp. unit.

Mr. McElroy, who joined Hibernia in January 1996, said making the portfolio managers accessible helps customers feel comfortable investing with Hibernia.

While Tower Capital's portfolio managers have always been available for conversations with investors, Mr. McElroy said the bank does not advertise that fact. The fear is they would be deluged with phone calls and "wouldn't be able to manage anything," Mr. McElroy said.

Other companies have found outspoken portfolio managers can get into hot water. Fidelity Investments last year changed its corporate policy that allowed portfolio managers to speak publicly about their investment strategies, after some managers came under fire for selling stocks as they were publicly touting them.

Hibernia currently sells the Tower Capital funds through its brokerage subsidiary on a load basis. The four retail funds manage a combined $700 million of assets.

For reprint and licensing requests for this article, click here.
MORE FROM AMERICAN BANKER