Strategic diversification is the key to West Virginia's state pension programme if the scheme is to meet its future funding needs
By Susan Barreto
The tiny $8 billion state pension programme of West Virginia is positive proof that size does not matter when it comes to hedge fund sophistication, as trustees take the direct approach when it comes to a number of potential strategies.
A little over four years ago, two of the eight pension plans served by the West Virginia Investment Management Board - Teachers' Retirement System and the Public Safety Retirement Fund - reported funding levels of 22% and 26% respectively. Those same pension portfolios, which had some of the worst funding ratios in the US, were transformed to 90% and 100% funding levels in just three years.
The latest impressive move for trustees was taken last July to put more than $1 billion to work with 19...