WEST PALM BEACH, FL (HEDGECO.NET) – The Massachusetts State Pension fund has appointed five hedge fund groups to help the group implement its hedge fund investment strategy. The state pension fundhas devoted about $1.625 billion to hedge fund investments, according to the report. This investment marks the biggest hedge fund investment of any state pension fund so far.
The fund, the New England Pension Reserves Investment Management Board decided last year to devote about 5% of its $32 billion public sector workers retirement portfolio into hedge fund management firms. The first batch of the investment, about $325 million will be appropriated this summer, according to the reports.
Several asset management companies have been tapped with the help of New England Pension Consultants to help the pension group accomplish this objective. They include; New York-based firms Arden Asset Management Inc. and Ivy Asset Management Corp., K2 Advisors LLC in Connecticut, Pacific Alternative Asset Management Co. in California, and Silver Creek SV LLC in Washington.
The selected five groups will allocate their portion of investments to individual hedge funds that specialize in four main strategies: long-short investments, relative value opportunities, event-driven investments, such as mergers and buyouts, as well as global macro strategies. The year 2004 has so far seen increases in the number of pension funds investing with hedge fund managers. One of the first of such groups to invest in hedge funds was the California Public Employees Retirement System [CalPers], which implemented its hedge fund investment strategy several years ago. Such a trend is also being mirrored by international pension funds in countries like UK, Switzerland, Japan, and others.
Paul Oranika
Editor-in-Chief
HedgeCo.Net
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