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From the Opalesque Team: Forsta AP-fonden, which oversees assets of SEK 221 bln ($34bln) announced in its recently released 2007 annual report a total return of 4.6%. Forsta's investments in alternatives returned +18.6% or approximately $154m. Most of these returns were generated by investments in Fastigheter and Cevian Capital.

That Cevian Capital and Cevian Capital II generated amongst the largest returns for the nations pension funds is ironic as they are managed by Christer Gardell, the man who, the former Prime Minister of Sweden says "is destroying the fabric of his nation's capitalism" (Source) for his activist investing practices. According to the Forsta annual report Cevian generated net returns for the pension fund of approximately 36% in 2007, which are 21% higher than Cevian's index (MSCI World Index plus 4% pts).

According to Celent's report, "Challenges and Innovation in the Hedge Fund Industry" release in July of this year, "Pension funds have begun to re-engineer their portfolios and to seek legislative approval for investing in alternative investment vehicles. And despite recent market volatility, public pensions show no sign of abandoning their push into hedge funds." This seems to be true with Forsta as Johan Magnusson, serving his first year as Managing Director of the Fund said in a mid-year report the results of an asset liability matching st......................

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