Hedge Funds
A university system based in a Southern state has approved a commitment to a global macro hedge fund strategy.
The foundation added several strategies to its marketable alternatives portfolio during the first half of the year.
The commitments include a $300 million commitment to a separately managed account focused on private credit emerging managers.
The pension plan’s investment committee approved four commitments totaling $275 million last week.
Plan liquidated its 5% risk parity allocation in March and reallocated the target to hedge funds, a new allocation for the plan.
The university has incorporated an investment policy prohibiting proxy votes based on ESG-like considerations and slightly adjusted a hedge fund portfolio after completing an asset allocation study.
The pension plan will liquidate its entire domestic equity roster.
The pension plan recently committed up to $75 million to an existing hedge fund manager relationship and tweaked its private equity sub-asset class targets.
The fund is currently searching for opportunistic credit managers for its portfolio after consolidating its public credit portfolio into a passive U.S. aggregate bond index in the first quarter.
The pension plan has selected one firm to provide hedge fund, credit and real assets consulting services.