Sat, Jul 2, 2016
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Industry Updates

Two U.S. retirement funds to allocate $330m to L/S equity hedge funds

Thursday, February 18, 2010
Opalesque Industry Update – Two American retirement systems have announced plans to allocate a total of $330m to long/short equity hedge funds, reported PIonline.com.

The San Bernardino Country (California) Employees’ Retirement Association is looking for a long/short equity hedge fund manager for its first-ever $150m allocation into hedge funds, the first report said.

Investment officer Don Pierce said that the $5bn retirement system has tasked its investment consultant NEPC to search for a manager. The new allocation is part of the system’s overall move to active equity management.

And the Milwaukee County Employees’ Retirement System appointed K2 Advisors and ABS Investment Management to manage its long/short equity funds of hedge funds, another report indicated. Retirement system manager Gerald Schroeder said each manager would be given $90m each or 10% of the system’s assets.

It is also the first foray of the $1.8bn fund into hedge fund investment.

Schroeder said the fund would come from rebalancing from overweight asset classes such as fixed income, which was at 44.1% of total assets as of Dec. 31, and domestic equity, 30.9% as of the same date.

The surge in hedge funds allocations by institutional investors was predicted by industry tracker Preqin in its December 2009 report, which said that hedge fund managers could rely on institutional investors when seeking new capital this year.

Preqin’s latest report in January, which surveyed 60 institutional investors, showed that the number of institutions investing in hedge funds through separate or managed accounts could more than double in 2010. At least 16% of those surveyed said they already invested in hedge fund separate accounts and an additional 23% are considering making their first separate account investment in 2010.

Only this week, it was reported that Persian Gulf Arab investment institutions were expected to shore up allocations to hedge funds in the coming months as InvestCorp Bank BSC of Bahrain, which manages $12bn, has signified intentions to raise its hedge fund portfolio.

Australia’s Future Fund also announced early this month that it allocated some $4.2bn to three hedge fund managers; Ochs Ziff, a US-based multi-strategy manager, BlackRock Alternative Advisors, which has various hedge fund strategies managed from several countries including the former Quellos Capital Management, and Brevan Howard, a UK-based alternatives manager.

Although institutional investors are now more willing to invest in hedge funds, they are also demanding more transparency and control over their portfolio. The $200bn California Public Employees’ Retirement System (Calpers), one of the largest and best-known institutional investors, wants more control over the hedge funds it uses. Calpers said it will no longer allow to pool money with other investors in the conventional fund scheme. It also wants these managers to trade directly for Calpers’ individual accounts, an arrangement that would allow the pension fund to see and control all the securities the manager picks on its behalf. – KM –

What do you think?

   Use "anonymous" as my name    |   Alert me via email on new comments   |   
Today's Exclusives Today's Other Voices More Exclusives
Previous Opalesque Exclusives                                  
More Other Voices
Previous Other Voices                                               
Access Alternative Market Briefing


  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. Investing - Soros, Druckenmiller among hedgies profiting in market plunge, Hedge funds were most bullish on bonds since 2004 before Brexit, Surprise Brexit vote unleashes scramble for dollars, High-yield hit on Brexit but no panic selling, Scientist turned hedge fund founder lured to pound, euro, Hedge fund avoids commodities, posts big gains[more]

    Soros, Druckenmiller among hedgies profiting in market plunge From HITC.com: Bullish positions in gold and volatility and well-timed short bets on China and emerging markets, among other areas, were some of the trades that benefited hedge funds on Friday as markets digested Britons' s

  2. Manager Profile - A 26-year old hedge fund manager called Brexit — here's what he thinks about the historic vote[more]

    From Businessinsider.com: Taylor Mann is not your typical fund manager. The twenty-six year old Texas A&M graduate manages Pine Capital in Larue, Texas (population 160), where he resides with his three-year old daughter. Also atypical compared with many of the largest funds out there, Mann makes

  3. Chesapeake Partners to liquidate hedge fund amidst 'hostile environment'[more]

    Komfie Manalo, Opalesque Asia: Chesapeake Partners Management, the hedge fund run by woman fund manager Traci Lerner said it would return investors’ money after 25 years because the market environment has become "hostile" to manage other people’s money, reported

  4. Europe - George Soros says Brexit has ‘unleashed’ a financial markets crisis, Brexit—what we know, Will the UK’s departure be a ‘soft-Brexit’ or a ‘hard-Brexit’?, Brexit: Six-point action plan for asset managers[more]

    George Soros says Brexit has ‘unleashed’ a financial markets crisis From Bloomberg.com: Britain’s decision to leave the European Union has “unleashed” a crisis in financial markets similar to the global financial crisis of 2007 and 2008, George Soros told the European Parliament in Bruss

  5. Hedge Fund Due Diligence Exchange offers complete due diligence reports at $1500[more]

    Matthias Knab, Opalesque: HFDDX is offering complete alternative investment due diligence reports at $1500 US. Industry professionals can simply go to www.hfddx.com and indicate their interest in sponsoring one or more DD Reports for $1500 each.