General Motors gets an alpha tune-up via direct investments

Mon Sep 5, 2011

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US car company pension now allocates more than $11bn


By Susan Barreto

General Motors has quietly revved-up its hedge fund investments over the last 10 years to become the pace setter among institutional investors. It has one of the largest hedge fund portfolios among global pension funds.

Ten years ago - as reported in the debut issue of InvestHedge - the General Motors pension plan decided to allocate 1% of its $85 billion, roughly $800 million, to hedge funds. GM staffers Paul Platkin and Mark Atanasio handled manager selection with a small amount, totalling $100 million, going to Man Group's Glenwood Capital Management funds.

Glenwood in turn operated as an adviser and strategic consultant on manager selection to the GM team.

Prior to this formal decision, in 1998 as Long-Term Capital Management was making headlines, GM made its maiden allocation to hedge funds. The goal was to select between 20 and 30 hedge funds in a wide variety of strategies...

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