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.
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...