New York (HedgeCo.Net) – In an attempt to reduce volatility and heighten returns, New York City’s Employees’ Retirement System, Police Department and Fire Department are planning on adding up to 15 hedge fund managers over the next few years.
Fire Engineering reports: “The goal is 8-10% net return per year with 5-7% volatility. About $3.5 billion has been approved for hedge funds of which $1.7 billion has already been allocated. The three pensions are focusing on event driven strategies as they have recently allocated to commodity trading advisors, global macro and relative value managers.”
Allocations of $100-$350 million are expected. A $450 million allocation was made to Permal Asset Management (fund of funds) in 2011. In March 2012, direct investments of $350 million each were made to Brevan Howard Asset Management (global macro) and DE Shaw (multi-strategy). A $200 million allocation was made to Brigade Capital Management (credit). Caspian Capital Advisors (multi-strategy) and BlueCrest Capital’s BlueTrend fund (systematic) also received allocations this year.
Editing by Alex Akesson
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