California continues to focus on a golden destination of pure alpha
Mon Sep 5, 2011
CalPERS takes hedge funds out of the domestic equity bucket as it aims to invest $9.5 billion
The $238 billion California Public Employees' Retirement System
(CalPERS) has nearly finished realigning its relationships with
hedge fund managers. Now after 10 years it is re-stating its
absolute return aims and tactically streamlining its hedge fund
investments to be more than just an equity hedge.
The most recent allocation to its Risk Managed Absolute
Return Strategies Program (RMARS) is a $100 million commitment
to the Standard Pacific Eureka Fund, a long/short equity fund
that has a global focus on mid-cap stocks. The fund's
investment approach is fundamentally driven by developing
information channels across industries, up and down the supply
chain and around the world. This, in addition to hiring a
market-neutral hedge fund managed by OMG Capital earlier this
year, also for a $100 million allocation, are CalPERS' first
new allocations for a number of months.
The allocation framework for the absolute return strategies
programme has yet...
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