San Diego re-draws its hedge fund plans

Thu Sep 2, 2010


County pension outsources CIO role, focuses on controlling risk and volatility


By Susan Barreto

The management organisation fad of the past couple decades has finally hit the pension fund community.

In what is also a test of how hedge funds can be reintroduced to a portfolio following losses, a fraud and the demolition of the trailblazing portable alpha programme, San Diego County Employees Retirement Association (SDCERA) has outsourced its chief investment officer role.


Lee Partridge


If successful, this hiring technique may catch on elsewhere if pension executives calculate the payoff in the long-term. At the heart of the value proposition for an external chief investment officer is a renewed focus on risk management.

The $7.5 billion county pension fund in the cash-strapped state of California expects more than just to lower risks and to make savings on costs. This savvy plan is going to make more tactical use of hedge fund strategies and its aim is that this will ultimately lead...

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