CalPERS Announces $1.6 billion Direct Allocation to Hedge Funds, Searching for Managed Account Platform
CalPERS, The $269 billion CA State Employee Retirement pension fund, announced that it will issue an RFP for a managed account investment platform provider for its $5.2 billion hedge fund portfolio as part of its 2013-2014 fiscal year plan. The pension fund has made significant changes to its strategy allocation, indicating that it will invest $1.6 billion directly into hedge funds and eliminate a 31% allocation to hedge funds of funds. The fund also added a 6% allocation to discretionary global macro, which will bring their total investments in global macro close to 10% of hedge fund assets.
According to an article reported by Pensions and Investments, the fund also plans to target new hedge fund investment opportunities in 2014 including a focus on European credit, non-performing U.S loans, and mortgage-servicing rights. CalPERS will also add nine new investment staff to the existing hedge fund team by the end of the current fiscal year, June 30, 2014. Learn more about CalPERS and its recent allocation strategies here.