Two years ago, Joseph R. Biondo decided to strike out on his own after tiring of Wall Street, and founded his own company, The Biondo Group. Since then the firm has played the role of a registered investment adviser and broker-dealer. That recently changed, though, as Biondo decided to launch its own funds.

Biodo launched its first fund -- Biondo Growth Fund -- on May 8. The fund is an all-cap growth fund with net expenses of 150 basis points per year. Senior portfolio management director Joseph R. Biondo (Sr.) and senior portfolio manager/COO Joseph P. Biondo (Jr.) serve as portfolio managers for the fund.

Joseph Biondo Sr. started the Milford, Pennsylvania-based company because, in his words, after more than four decades on Wall Street, he "got tired of doing business at the big wirehouses, tired of the structure of management, tired of the inability to act in the best interest of clients."

The Biondos have spent more than fifteen years managing separate accounts, and from there sprang their desire to launch a mutual fund.

"We've had a very good track record with separate accounts," Joseph Biondo Jr. told the MFWire in an interview, "but the separate accounts model doesn't work well for everybody."

Ultimately, according to Joseph Biondo Jr., the mutual fund was launched to better handle volume and to make costs more reasonable. And the Biondo Group's clients have responded. The fund was initially just rolled out to the firm's private client group. So far more than 500 direct clients have invested nearly $30 million in the fund.

"The response has been very good," Joseph Biondo Jr. beamed. "The acceptance rate has been exceptional, probably beyond expectations."

For the Biondos, the next step is marketing the fund through other broker-dealers and supermarkets. Joseph Biondo Jr. revealed that they already have agreements in place with Bear Stearns, Fidelity and Scott Trade, and that distribution through Charles Schwab is only a month or two away.

"We don't know how well it will be received," Joseph Biondo Jr. admitted, citing the fund's brief track record.

If the fund does take off, though, the Biondos might launch more. Joseph Biondo Jr. hinted at the possibility of launching growth funds in the small, mid, and large-cap range. However, value funds are out of the question.

"We've growth managers," Joseph Biondo Jr. said. "This is all we do."

According to the fund's prospectus, the Bank of New York serves as fund custodian. Gemini Fund Services is the fund administrator, accountant and transfer agent. 

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