Hedge Fund Rising Stars: Chris Paolino

In 2007, Hartford Financial Services Group carved out a 20 percent hedge fund allocation for its own $4.4 billion pension fund. As portfolio manager within the hedge fund group at Hartford, ­Connecticut–based Hartford Investment ­Management, Christopher Paolino, 34, was instrumental in designing and implementing the new allocation. Paolino, who has a BS in finance from the University of Connecticut, put in place a strategy designed to reduce volatility while at least equaling the average returns on global equity. So far the plan, which emphasizes liquidity and capital preservation in the $1.5 billion defined benefit and general account portfolios, is working. From its inception in March 2008 through November 2011, Hartford gained over 11 percent, far exceeding most hedge fund indexes and the Standard & Poor’s 500 Index return of 1.8 percent.