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.