Tue, Jan 19, 2021
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Alternative Market Briefing

US public pensions up commitments to hedge funds by $2.2bn in Q3, taking the YTD total past $10bn

Thursday, November 26, 2020

Laxman Pai, Opalesque Asia:

Interest in credit hedge funds takes YTD allocations past $10bn: US public pensions increased gross commitments to hedge funds by $2.2bn in Q3, taking the YTD total past $10bn, said a study.

According to HFM Insights' latest report, credit and real estate hedge funds have been of increasing interest throughout the year. Combined, they attracted $900m in Q3 (41%) and $3.6bn YTD (34%).

On balance, North American institutional allocators viewed hedge funds more favorably in Q3 than they did at the start of the year. However, the asset class still divides opinion, with a relatively high proportion of investors, one-quarter; viewing hedge funds less favorably.

Oregon's public pension fund awarded the largest single hedge fund mandate in Q3 and is still $2bn shies of its target allocation for diversifying strategies. Its search activity is now on hold until a dedicated hedge fund consultant has been secured (due this quarter).

Several other US publics awarded large tickets in Q3. If discontinued mandates are included, YTD commitments are net positive at $1.1bn. This inflow is largely due to credit and real estate hedge fund commitments; without them, YTD flows are net negative, at -$1.2bn.

The study pointed out that many plans remain interested in credit and macro hedge funds, but opportunities for managers to win new institutional clients in Q4 (and likely Q1 2021) will be severely limited by second and third waves of the......................

To view our full article Click here

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. SPACs: The SPAC shareholder class action boom is coming, SPACs have a hidden risk that investors need to know about[more]

    The SPAC shareholder class action boom is coming From Reuters: I'm not the first to predict it, but the past few weeks have brought unmistakable signs that shareholder class action firms are homing in on Special Purpose Acquisition Companies, those so-called blank-check entities that g

  2. SPACs: Jeremy Grantham: "SPACs should be illegal", Spacs may fuel European IPO boom, SPAC IPOs surge, The SPAC pop is now a thing: More unicorns getting on board, Paysafe readies $9bn IPO Via SPAC[more]

    Jeremy Grantham: "SPACs should be illegal" Special-purpose acquisition companies (SPACs) should be illegal, according to Jeremy Grantham, as they escape regulatory oversight and encourage the "most obscene type of investing." Grantham is the co-founder and chief investment strategi

  3. News Briefs: What if data scientists had licenses like lawyers?, Next generation behind family offices' ESG push[more]

    What if data scientists had licenses like lawyers? From Bloomberg: Data scientists, if they're poorly qualified or act irresponsibly, can do at least as much damage as lawyers and doctors. The algorithms they create can ruin lives, aggravate social divisions, even facilitate genocide.

  4. SPACs: SPAC costs are 'far higher' than previously realized, study finds, Jim Cramer recommends profit taking in speculative electric SPAC names.[more]

    SPAC costs are 'far higher' than previously realized, study finds From Institutional Investor: The costs of going public via a special-purpose acquisition company are both "opaque and far higher" than previously recognized, new research shows. SPAC shares tend to drop by one third or

  5. Institutional Investors: Pensions swamped in a sea of negative real rates, Bahrain's pension fund authority faces collapse[more]

    Pensions swamped in a sea of negative real rates From FA Mag: Defined-benefit pension plans were already barely treading water heading into 2020. In the years ahead, the risk is as great as ever that a large swath of them will drown. As the name implies, defined-benefit pensions promis