Financial Times – Just weeks after closing its internal hedge fund arm, ATP, Denmark’s largest pension fund, says it will now integrate its hedge fund investment platform – or what it calls its “alpha” strategies – into its main investment portfolio.
ATP announced in December last year that it is to restructure ATP Alpha, its DKr10.6bn ($1.9bn) hedge fund unit, admitting that its hunt for hedge fund alpha had become “time consuming” and “expensive”.
The closure saw ATP axe all of its internal hedge fund strategies, which triggered the exit of 15 portfolio managers.
ATP, which ranks among Europe’s largest pension investors, is used by more than 4.7m Danes as a savings vehicle for retirement.
Henrik Gade Jepsen, acting chief executive officer and chief investment officer at ATP, which manages assets of DKr624bn ($111.8bn), says: “I’m not saying that alpha [no longer exists], but it is very difficult, time consuming and expensive to extract.”