MFA Blog

MassPRIM Commits $100 Million to Hedge Fund

Posted on October 24, 2013

Late last week at a board meeting, the Massachusetts Pension Reserves Investment Management (MassPRIM) made a commitment of $100 million to a macro hedge fund.  As of August 31, the nearly $54 billion pension has allocated $4.8 billion, or 9% of the entire portfolio, to hedge funds.  It has a target allocation for hedge funds of 10% of the portfolio.

The pension’s board also discussed plans for more direct investments in hedge funds rather than investing in fund of funds.

According to a recent article from Infovest21, MassPRIM also plans to negotiate with a few hedge fund managers to reduce fees.  The pension is researching hedge fund replication, stating that, “using more passive hedge fund strategies could save $7 million for each $100 million invested,” according to the article.

Learn more about this story online from Infovest21.