The agency that manages investments for the New Jersey Pension Fund recently made $800 million in investments with hedge funds. The commitments are “in an effort to reduce the overall risk of the investment portfolio and increase downside protection,” the agency told Pensions & Investments.
The investments and commitments, made by the New Jersey Division of Investment, include a first-time investment of $300 million in a separate account run by a hedge fund focused on distressed debt, high-yield bank loans, and equity. The Division of Investment also made follow-on commitments to five separate hedge funds of $100 million each. Pensions & Investments noted that the Division described the fund managers as having “demonstrated diversifying qualities during periods of market dislocation.”
The Division of Investment also made separate investments in other alternatives such as private equity and real estate.
Learn more about the hedge fund investments and commitments online from Pensions & Investments.