Friday, May 15, 2020

What Are Pooled Investment Funds and Should You Consider Them?


A New York City-based investment banker and financial executive, Matt Eitner is the CEO of Laidlaw & Company (UK), a position he has held for almost a decade. Matt Eitner previously worked with Aegis Capital and Casimir Capital. Laidlaw & Company manages numerous investment vehicles, many of which are pooled investment funds.

A pooled investment fund is a simple way for multiple investors to combine their investments into a single professionally managed portfolio. Typically, pooled investment funds are specialized in a sector or industry. An example is real estate investment trusts.

One of the major benefits of investing in a pooled fund is diversification. Even if they’re limited to one sector, pooled investment funds are usually spread out over many key players to maximize returns and mitigate risk.

Moreover, participating in a pooled investment fund carries a low upfront capital requirement. That’s not exactly a rule of investment funds, but most allow investors to enter with relatively small sums, so they’re a good way to become active in an industry without a major allocation of funds. And, pooled investment funds are passive vehicles. Fund managers are responsible for finding investments, negotiating prices, and managing assets.