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
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...