UK’s Merseyside Pension goes direct with a little help from its friends

Thu Feb 3, 2011


Post-portfolio rationalisation, the UK’s Merseyside has settled on PAAMCO to handle oversight of its alternative investments


By Pirkko Juntunen

On the surface, the investment story for Merseyside Pension Fund reads like a typical UK local authority tale of a large UK pension fund moving away from funds of hedge funds into the arms of hedge fund investments directly.

The UK local government pension scheme recently restructured its hedge fund portfolio and rationalised its six funds of hedge fund providers down to one. Like a game of musical chairs, it was Pacific Alternative Asset Management that was left sitting on the last chair when the music stopped at Merseyside.

PAAMCO, which has run money for the pension fund for five years, will be working alongside some eight to 10 single hedge fund managers that Merseyside is currently drawing up a short list for. Merseyside allocated a further $120 million to PAAMCO in December, effectively tripling its current allocation to the US-based bespoke specialist.

With $9.6 billion PAAMCO...

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