Education pension fund goes it alone
Tue Sep 1, 2009
After the recent market turmoil opened up access to top managers, Universities Superannuation Scheme is building up its alternatives team to invest directly with approximately 25 hedge funds
After the recent market turmoil opened up access to top
managers, Universities Superannuation Scheme is building up its
alternatives team to invest directly with approximately 25
By Niki Natarajan
Universities Superannuation Scheme (USS) is taking an
innovative approach to hedge fund investing, at least compared
to its UK peers, most of which use funds of funds. The
corporate trustee of the second largest pension fund in the UK,
which plans to put 20% of its total assets to work in
alternatives, has opted for the core-satellite system of hedge
fund investing that will eventually see direct allocations of
some $80 million apiece going to roughly 25 hedge fund
Core-satellite in the long-only world was Frank Russell's
calling card when it was one of the top three pension fund
consultants. To do this, USS has used hedge fund replicators to
give hedge fund-like returns in...
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