Business Services Industry
Berkshire Moody, Ltd. Retools to Focus on Unique Hedge Alternative to Traditional Oil and Gas Investments
Business Wire, July 30, 2007
Seeks NASD Broker/Dealers and Fee-Based Financial Service Providers to Consider Company's New Life Settlement Hedging Strategy
THE WOODLANDS, Texas -- Berkshire Moody, Ltd., announced today that it has retooled to keenly focus on working with a greater number of fee-based financial services advisors who may be seeking alternative investment strategies for their clients in the energy sector. The company believes it is possible to capture both the income and growth potential indigenous to the oil and gas industry while providing a hedge for capital preservation through a position in Life Settlements.
Investing in life settlement contracts consists of the purchase of life insurance policies by a third party investor from policy owners for investment purposes, for a discounted, but immediate, cash payment. The investor thereby acquires the unique position as the beneficiary of the insured under the policy terms; entitled to eventually receive policy proceeds so long as the investor keeps the policy in force by paying the premiums as they become due. Return on investment is determined by numerous factors including life expectancy, the discount at which the policy is purchased, etc.
Berkshire Moody believes Life Settlements can provide an outstanding hedge to any exposure that may occur in the oil and gas segment. In the event that the majority or all of an investor's capital investment in an oil and gas project is lost, if purchased correctly, a maturing Life Settlement portfolio purchased with a portion of the investor's capital could have a face value that equals or exceeds the original invested principal, thus protecting the investor's downside exposure.
Life settlement contracts represent a new stable value asset class that offers a reliable and relatively determinable future payment or return on investment free from market trends, interest rate fluctuations and economic recession or slowdown. This asset class is one of the fasted growing trends in the financial markets today, potentially yielding up to 20 percent annual cash-on-cash returns if purchased and managed correctly.
Berkshire Moody believes this unique approach to oil and gas investing should present an opportunity for financial advisors to help their clients invest "smartly" in the energy sector by using Life Settlements as a hedge to protect at-risk capital.
Berkshire Moody, Ltd. seeks an audience with NASD Broker/Dealers or fee-based financial services providers/advisors exploring viable alternatives for their clients.
This press release should not be considered an offer to sell or a solicitation to buy.
About Berkshire Moody, Ltd.
Berkshire Moody, Ltd., is a private investment banking and consulting firm and is a licensee of Life Partners, Inc., a wholly-owned subsidiary of Life Partners Holdings, Inc. (NASDAQ: LPHI), a leader in the life settlement industry. We are a sister company of Energy Capital Group, an oil and gas financial services company founded in 1989.
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