The Colorado Fire & Police Pension fund recently approved an allocation of $49 million (or 5% of its $3.5 billion in total assets) to managed futures strategies. The commitment goes to three separate alternatives managers, according to a recent story from Pensions & Investments. The pension also committed $34 million between two separate long/short equity hedge funds.
As part of the portfolio rebalancing, the pension also increased its alternatives growth portfolio allocation from 24% to 26%. The risk-reducing portfolio, consisting of fixed income, cash, and absolute-return hedge funds, was reduced from 31% to 28%, with fixed income bearing the brunt of reductions through rebalancing.
Colorado Fire & Police Pension plans to search for the three managed futures managers internally over the near term. Learn more about this story online from Pensions & Investments.