Hedge Funds
Funding for the new investment comes from the partial redemption of another hedge fund manager.
The $50 million investment concludes a search for an additional long/short strategy initiated late last year.
The retirement plan was notified of five commitments totaling roughly $1 billion last week.
The retirement board also hired a new private equity advisor at its investment committee meeting today.
Allocations to illiquid asset classes will provide university portfolios with stronger returns relative to public equity or bond markets over the long term, despite liquidity or spending squeezes in the short term.
The institution temporarily paused making investments in illiquid assets in the first quarter after reviewing its investment policy and guidelines, where concerns about private equity investing and not having an updated five-year strategic plan were made.
The fund received a total of six bids in its private markets consultant search.
The plan also terminated a long/short equity manager.
A university based in a Southern state has added two alternative investments to its approximately $2.3 billion portfolio.
The retirement association has issued an RFP seeking diversifying hedge fund strategies.