Hartford is a leader in retirement services and was named the fastest-growing provider of 401(k) plans in the $250,000 to $10 million market in 2005-2008 by the 401(k) Market Share report. This association provides a great opportunity to Hartford to serve Abbett’s retirement plan clients with its products and new investment opportunities.

Abbett manages nearly 8,000 packaged small 401(k) plans that include more than 59,000 participants and over $1.2 billion in assets. The company will exit the small-business 401(k) plan market after this deal. The transfer of many of these plans will begin immediately.

Hartford’s offers to waive all contingent deferred sales charges on all A and C share plans, a plan termination fee and a 2010 billing fee for plans that submit account opening paperwork by April 1, 2010. Moreover, its Aviator 401(k) program series, which provides expanded fund choices, underwriting and pricing flexibility as well as a third-party co-fiduciary service free of cost, will now be available to Lord Abbett clients.

We remain concerned with Hartford’s exposure to variable annuities and weak capital position as of now and also suspect that the company will continue to incur increasing losses on its investment portfolio. It is difficult to anticipate significant expansion of the valuation multiples at this point in time due to the challenging environment as we expect Hartford to face higher losses in the investment portfolio in the coming quarters. Thus, we are maintaining our Neutral recommendation on the shares.

Discovery's main payload is the Leonardo Multi-Purpose Logistics Module, which is carrying extra supplies and equipment to help establish a six-astronaut crew capacity on the space station. The payload includes science and storage racks, a treadmill and a crew quarter.

Pratt & Whitney Rocketdyne Inc., a part of Pratt & Whitney, is a preferred provider of high-value propulsion, power, energy and innovative system solutions used in a wide variety of government and commercial applications, including the main engines for space shuttles, Atlas and Delta launch vehicles, missile defense systems and advanced hypersonic engines.

Pratt & Whitney is a world leader in the design, manufacture and service of aircraft engines, space propulsion systems and industrial gas turbines. United Technologies, based in Hartford, Connecticut, is a diversified company providing high technology products and services to the global aerospace and commercial building industries. Its major competitors include General Electric Co. (GE) and Boeing Co. (BA). We currently have a Neutral recommendation on the stock.

Investors can find such funds by checking out the entire list of the Zacks #1 Rank Asset Allocation Balanced Funds.

2 Solid Picks

Columbia LifeGoal Income A (NLFAX) was incepted in September 2003. The investment seeks current income, consistent with relative stability of principal.

The fund actively allocates its assets among fixed income and income-oriented equities, convertibles and REITs by investing in Columbia Funds and individual securities. It is designed to be part of a fixed-income portfolio to enhance returns in all interest rate environments.

Anwiti Bahuguna has been lead manager at the fund since February 2009. The fund has an expense ratio of 0.67%.

Hartford Income Allocation A (HINAX) seeks current income and, as a secondary objective, capital preservation. It typically invests in a combination of fixed income funds.

The fund uses a "fund-of-funds" approach, investing in a diversified group of the Hartford mutual funds, known as underlying funds. It may invest in funds with varying credit quality.

Unit holders have to make a minimum initial investment of $1,000 to enter this Zacks#1 Rank ("Strong Buy") fund. The fund declares and pays income dividends periodically and distributes net capital gains, if any, annually.

Investors can find such funds by checking out the entire list of the Zacks #1 Rank Asset Allocation Balanced Funds.

3 Well-balanced Picks

Columbia LifeGoal Income A (NLFAX) was incepted in September 2003. The investment seeks current income, consistent with relative stability of principal.

The fund actively allocates its assets among fixed income and income-oriented equities, convertibles and REITs by investing in Columbia Funds and individual securities. It is designed to be part of a fixed-income portfolio to enhance returns in all interest rate environments.

Anwiti Bahuguna has been lead manager at the fund since February 2009. The fund has an expense ratio of 0.67%.

Hartford Income Allocation A (HINAX) seeks current income and, as a secondary objective, capital preservation. It typically invests in a combination of fixed income funds.

The fund uses a "fund-of-funds" approach, investing in a diversified group of the Hartford mutual funds, known as underlying funds. It may invest in funds with varying credit quality.

Unit holders have to make a minimum initial investment of $1,000 to enter this Zacks#1 Rank ("Strong Buy") fund. The fund declares and pays income dividends periodically and distributes net capital gains, if any, annually.

ING Index Plus LargeCap Equity IX A (IXSAX) seeks to outperform the total return performance of the S&P 500 index, while maintaining a market level of risk.

The fund normally invests at least 80% of net assets in stocks that are part of the S&P 500 index. It may invest in derivative instruments, including but not limited to futures contracts and options.

The fund's top holdings include ExxonMobil Corp. (XOM), Procter & Gamble Co. (PG) and General Electric Co. (GE)

Discover Many More Funds

Learn more about the new Zacks Mutual Fund Rank and discover some of the best market-beating mutual funds by browsing our new mutual funds section. This part of Zacks.com offers a variety of tools, including mutual fund research, a new mutual fund screener, helpful answers to frequently asked questions and quick access to prospectuses and other information.

By applying the Zacks Rank to mutual funds, investors can find funds that not only outpaced the market in the past but are also expected to outperform going forward.

On June 24, 2009, Hartford Financial Services Group, Inc. (HIG) completed the acquisition of Federal Trust Corporation for $10 million in cash. This acquisition will satisfy a key eligibility requirement for Hartford's participation in the Capital Purchase Program (CPP) as the company will now transform into a savings and loan holding company. Previously, the Treasury had stated that some of the life insurers may qualify for Troubled Asset Relief Program (TARP) because of their Bank Holding Company status.

Most life insurers have significant exposure to Commercial Mortgage Backed Securities (CMBS), which have resulted in increasing losses in the investment portfolio with the worsening downturn in Commercial Real Estate pricing. However, the TARP funds will provide some support to these companies. On May 14, 2009, Hartford announced that it has received preliminary approval from the U.S. Treasury Department to participate in the Treasury's CPP for an amount of $3.4 billion.

We remain concerned about Hartford's exposure to variable annuities and capital levels as of now and also suspect that the company will continue to incur increasing losses on its investment portfolio. Though it will get some comfort with the TARP fund. At the current price level, shares of Hartford trade at 0.48x its March 31, 2009 reported book value of $24.15 per share and 0.24x its adjusted book value (excluding AOCI) of $48.13 per share. It is difficult to anticipate significant price-to-book value premium, compared to its peer group (MetLife [MET], American International Group [AIG], Prudential Financial [PRU] and CIGNA [CI]) at this point in time due to the challenging environment. As such, we maintain our Hold recommendation on the shares of Hartford.

As the credit crisis intensified through a tumultuous year, Hartford lost $2.7 billion for writing down the value of mortgage-related assets and corporate debt in 2008.

In October, faced with concerns over the company's capital levels, Ayer accepted a $2.5 billion cash investment from German peer Allianz SE (AZ).

Even then, the downward trend in equity markets continued to drag the Connecticut-based firm along with it. All three key credit ratings agencies downgraded Hartford. To meet rising challenges, Ayer cut jobs, slashed the company's dividend by 84% and appealed for funds under the US Treasury's Troubled Asset Relief Program (TARP).

Last month, Hartford won preliminary approval for $3.4 billion in government bailout along with six other insurers. However, even though most insurers rejected the proposal for federal support to sustain themselves, Hartford and Lincoln National Corp. (LNC) are likely to accept those funds. Ayer said last week that he was "finalizing details" with the government regarding TARP money.

Even though Ayer has defended the measures he undertook to handle the crisis, investors believe he could have done better. The Hartford board will now begin the search for an immediate and external successor.

Shares of Hartford (HIG), a Zacks #4 Rank ("Hold") company, are up nearly 2%.

Along with this much anticipated move, which is a natural corollary of the beleaguered firm's entry into bankruptcy court, the benchmark stock index also removed Citigroup Inc. (C) from its lineup to make way for the second-largest U.S. commercial insurer Travelers Co. (TRV). Both GM and Citigroup will be formally taken out from the average at the opening of trade on Jun 8.

While swapping companies on the index usually takes years, the worst financial crisis since the Great Depression has claimed many of its components as victims. The last change came when Kraft Foods Inc. (KFT) replaced the ailing American International Group Inc. (AIG) in September.

Dow Jones Editor in Chief Robert Thomson, who plays a key role in deciding the composition of the index, said, "We were reluctant to remove Citigroup at the height of the financial frenzy, but it is clear that the bank is in the midst of a substantial restructuring which will see the government with a large and ongoing stake."

Citi was added to the index in March 1997 as Travelers Group Inc. The country's biggest financial firm by assets was formed by a merger of Travelers and Citicorp. In 2002, it spun off the Hartford, Connecticut-based Travelers Property Casualty Corp. through an initial public offering. The irony is that the same firm is now replacing Citigroup on the DJIA.

With the addition of Cisco to the index, the technology weighting of the DJIA now goes up to about 17%. Shares of Cisco rose 6% to $19.61 at noon on the NASDAQ, while Travelers gained nearly 4% to $42.20 on the New York Stock Exchange at about the same time. Responding to upbeat economic reports, the DJIA is currently up 2.67% or 227.24 points.

The Federal Reserve may have finally agreed to open its coffers to bail out troubled insurers, but many of the eligible firms are already looking to reject the offer.

In order to ease concerns regarding the financial health of the sector, the government said six insurers, including big names like Hartford (HIG), Prudential (PRU), Lincoln National (LNC) and Principal Financial Group (PFG), were entitled to receive $22 billion in emergency funds under its Troubled Assets Relief Program (TARP) program.

Minneapolis-based insurer Ameriprise Financial (AMP), which also won approval for federal support, has already turned down the offer saying it already has more than $1 billion in excess capital. According to the Wall Street Journal, Prudential Financial is expected to follow suit. Allstate (ALL) has also said it was considering its options.

So far, industry insiders consider Hartford Financial and Lincoln National as the two companies likely to settle for government intervention to meet their capital needs, as it would be difficult for them to raise equity at their modest valuations. Both firms have said their acceptance is subject to review of the final terms.

After the largest banks in the nation underwent regulatory stress tests and many of them are now struggling to refund taxpayers' money, insurers are naturally weighing their options well - whether to opt for the government as an investor by accepting capital essential for their survival or to stay off and save themselves from related complications.

The company still projects 2009 earnings growth between 3% and 5%.

Analysts expect the company to earn a profit of $3.94 in the current year. For next year, analysts forecast earnings of $4.10.

The Hartford, Conn. insurer said that it will release further information regarding its balance sheet and capital position on Tuesday.

Aetna is a Zacks #4 Rank ("Sell") company.

Earlier, the insurer had slashed its forecast for this year at least twice. Hartford said that its operating businesses are performing well despite a gloomy economic environment.

The Connecticut-based company now expects earnings between $4.70 and $4.90 a share, excluding a few investment results. In October, the company was looking for a profit in the range of $4.30 to $4.50.

Hartford's new earnings outlook for 2008 is nearly half of what it had estimated in December of the previous year. Analysts expect the company to earn $4.46 a share.

Connecticut Hedge Fund Guide

• Look at a map and it would seem that companies and businesses looking to move out of New York City and into nearby suburbs would naturally choose Westchester County the city's immediate northern suburb. But when hedge fund managers began moving out of Manhattan a few decades ago, they ignored Westchester and chose instead to move their homes and businesses into Greenwich.
• Great chart comparing the global hedge fund billion dollar club by location. Greenwich is 3rd on the list.
• The Connecticut Hedge Fund Association is a great resource for hedge fund information and networking in Connecticut. Information about events, membership, and leadership are all available here.
• The industry-wide job website contains frequent job postings for those looking for employment in Connecticut.
• Bruce McGuire says he was greatly influenced by a 2004 report by Casey, Quirk & Associates of Darien, which “estimated that institutional capital in hedge funds would increase from $60 billion to $300 billion by 2008” and also “predicted that by 2008, institutional capital would account for 50 percent of annual net new flows into hedge fund.” Most people read, think, and move on. Not McGuire. He acted upon the information and founded the Connecticut Hedge Fund Association (CTHFA) in 2004.
• Gottex Fund Management has sued a Connecticut hedge fund manager, alleging that it broke promises and misled it over redemption requests. The US$16 billion Swiss fund of hedge funds manager says that Greenwich-based Stewardship Investment Advisors and its managing director, Marlon Quan, did anything but live up to the firm’s name.
• Several years ago, when Amaranth Advisors cratered after losing billions on bad natural-gas bets and Pirate Capital became the subject of an SEC investigation, other Connecticut hedge fund managers grew nervous that they would become a target for a local politician looking to steal a few moves from New York State attorney general Eliot Spitzer.
• Connecticut hedge funds debate how much to tell investors to appease the SEC.
• A Connecticut hedge fund that bet heavily on the natural gas market lost almost $6 billion over the past month as it sold assets at a loss to stay afloat while its bets on natural gas plummeted, the fund told investors. Greenwich-based Amaranth Advisors said in a letter late Wednesday that the fund lost about 55 percent of its year-to-date assets.
• Hedge-fund scandals are piling up faster than autumn leaves on suburban lawns. In late September, the founders of Bayou Management, a $400 million Connecticut hedge-fund firm, pleaded guilty in federal court to criminal fraud. Two weeks later, the Securities & Exchange Commission filed fraud charges against the founder of the Wood River hedge funds
• State and federal officials in Connecticut are investigating the possible collapse of the Bayou Group, a hedge fund and brokerage firm in Stamford that managed an estimated $400 million for its investors, according to two people briefed on the investigation.
• Though only a paragraph long, a hedge fund disclosure bill in Connecticut is making waves in the nation's capital. At a March 7 hearing of the state legislature's joint Banks Committee in Hartford, Robert Clark, general counsel of the Washington-based Managed Funds Association, warned that the bill is "ill conceived and detrimental to the interests of the people of Connecticut."
• The current market-based system is the best way to regulate the trillion-dollar hedge fund industry although improvements can be made, Federal Reserve Chairman Ben Bernanke said Wednesday. Bernanke, speaking to a conference on global economics in New York City, said that the current system is superior to increased government regulation.
• Fugitive former hedge fund manager of a Connecticut based hedge fund, Samuel Israel III surrendered to police in Massachusetts on Wednesday, ending a federal manhunt after he faked his own death to avoid a 20-year prison sentence.
• Regulators’ interest comes from both the federal government and from the states, which are increasingly looking for ways to monitor hedge funds. One particularly important state, Connecticut, is considering two bills aimed at increasing the industry’s transparency. The Greenwich Time, based in the well-heeled community that is a favorite location for hedge funds, reported on the legislation Friday.
• Very interesting article detailing the relationship between hedge funds and divorce.
• Hedge funds would seem to be a business in which location doesn’t matter. Buy and sell orders can be executed from a beachfront villa in Costa Rica just as fast as from a cube farm in midtown, and the laws of economics dictate that businesses seek out the lowest-cost destinations.
• For more than 35 years, the modest, four-story building here known as Two Greenwich Plaza was home to a hodgepodge of small shippers, manufacturers and lawyers. Today, Two Greenwich Plaza is one of the most sought-after office buildings in one of the fastest-growing corners of the financial world.
• Considerable amounts of ink and pixels have been devoted lately to characterizing Barack Obama as the presidential candidate of the hedge-fund set. A Financial Times article last month quoted an anonymous United States businessman as saying, “The whole of Greenwich is backing Obama” — a reference to Greenwich, Conn., the leafy suburb that many hedge fund managers call home.
• No one in ritzy Greenwich, Conn., is losing sleep over RBS Greenwich Capital's relocation to Stamford. In fact, the financial services firm's move may be a blessing for the city, because it frees up 160,000 square feet of space in a market where vacancy in the central business district is nearly zero.
• Calgary, Alberta and Greenwich, Connecticut might be expected to mix about as well as oil and (sparkling) water. Calgary, which has boomed in recent years on the back of oil money, in its soul remains a cow town. Greenwich, a leafy suburb of New York, is anything but. The only herding done there recently is by the hedge funds that call it home following the latest investment fad.
• Interesting CNN comparison of the 25 top-earning towns. Greenwich, CT is number 14.
• Global hedge fund event taking place in Greenwich, Connecticut “the hedge fund capital of the world”
• A small hedge fund that provided short-term debt to companies has filed for Chapter 11 bankruptcy protection. Greenwich, Connecticut-based SageCrest Finance, managed by Windmill Management, said in its Chapter 11 petition filed in U.S. bankruptcy court that it had listed assets of $50 million to $100 million, and debt between $1 million and $10 million, reported Reuters
  

Related to Connecticut Hedge Fund Guide:

• Geographical Hedge Fund Guides
• New York Hedge Fund Guide
• Investment Book
• Hedge Fund Assets Rising in New York, Boston and CT
• Hedge Fund Tracker Tool
• Financial Certification
• Hedge Fund Forum