Komfie Manalo, Opalesque Asia: The $20bn San Francisco Employees’ Retirement System is planning to
reduce its exposure in hedge funds after its chairman, Victor Makras,
made strong representation before its board to rethink the pension
fund’s investment approach.
In a report, The Journal said that Markas issued a memo stating
that the pension would reduce its hedge funds portfolio to 3% of its
assets from the 15% recommended by the pension’s staff. In the memo,
Markas has also proposed to completely withdraw the pension’s hedge fund
portfolios.
The seven-man board of San Francisco pension is scheduled to discuss
Markas’ proposals today. The board has failed to reach a consensus on
the 15% recommendation by the staff three times due to disagreement on
the best approach.
The move by the San Francisco pension follows the September announcement
by the California Public Employees’ Retirement System, known by its
acronym CalPERS, to divest its entire $4bn hedge fund portfolio.
Ted Eliopoulos, CalPERS Interim Chief Investment Officer, said in a statement issued in September to announce
the move, "Hedge funds are certainly a viable strategy for some, but at
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