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From the Opalesque team:

Institutional investor the Canada Pension Plan Investment Board (CPPIB) will maintain a global focus for investments in order to capture opportunities in future years, said Portfolio Manager Aleksander Weiler during the latest Opalesque Roundtable (Toronto).

When speaking about the pension plan’s hedge fund investments Weiler also commented that CPPIB “have a lot of discussions with managers about appropriate structures for investors like ourselves that have longer time horizons,” touching on an important post-financial crisis topic – fee structure - that will impact many hedge fund firms as they are screened by institutional investors.

For hedge fund managers the interest in institutional allocations is their potential size and “stickiness”. For institutional investors like CPPIB the interest in hedge funds is investing in managers with proven abilities to generate alpha. But, with mandates to “maximize investment returns without undue risk of loss” institutional investors are turning to fee structures as one of the ways to ensure hedge fund managers are not dialing up risk, and are financially tied to long-term gains.

At the end of CPPIB fiscal year 2009 the portfolio invested 1.7% into hedge funds (representing $1.8bn). While this is not a large percentage, the pension does not have a specific ......................

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