Pensions & Investments – Texas Permanent School Fund’s slow journey toward direct investment in hedge funds hit a traffic jam, thanks to the state education agency’s decision that the permanent fund must reconsider a proposal to terminate three of its five hedge funds-of-funds managers.
The Texas State Board of Education and its committee on finance/ Permanent School Fund, which oversee management of the $24.4 billion Austin-based educational endowment, have spent more than a year in heated debate over a recommendation to move to direct investment in hedge funds through strategic relationships with two existing hedge funds-of-funds managers. Implicit in the proposal was terminating three hedge funds of funds.
