WEST PALM BEACH, FL (HEDGECO.NET) – The California Public Employees’ Retirement System, CalPERS said it will double its hedge fund assets according to Mark Anson, the Chief Investment officer.CalPERS is the largest retirement fund in the United States. He explained that the fund�s hedge fund investment strategies have been a success. Anson said, “We tend to stay away from the moreaggressive funds, we invest in a large, diversified pool of hedge funds.” This decision is a major boost for hedge funds because market watchers think many other pension fund managers will follow theCalPERS example.
Conrad S. Ciccotello, a professor at the Robinson College of Business at Georgia State University told The Sacramento Bee that CalPERS� decision carries some weight. He said, “They’re a bellwether institutional investor. Their entry was a kind of signal that it is safe to go into the park.� On hedge funds Ciccotello added, “It’s a mutual fund with few rules, you have to be a careful shopper.”
Currently CalPERS has $1 billion invested in its hedge fund portfolio. With the decision to double these assets, CalPERS will now devote additional $1 billion to its hedge fund portfolio bring its total investments to $2 billion. While some market participants think a hedge fund bubble is likely, such bubble has not materialized since such news began to hit the headlines. By doubling its hedge fund investments, CalPERS management does not seem to subscribe to such doomsday scenario for hedge funds.
CalPERS began investing in hedge funds about four years ago at a time when hedge funds were still considered risky. CalPERS manages about $177.8 billion for members of its retirement fund.
Paul Oranika
Editor-in-Chief
HedgeCo.Net
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