LASERS creates a $900m customised and concentrated portfolio

September 06, 2012  



The Louisiana pension fund aims for optimal diversification via three FoHFs and Bridgewater


By Susan Barreto

Bobby Beale
 
Staffers at the second-largest pension plan in the Louisiana have spent the last 18 months conducting a thorough review of their hedge fund programme – a move that has coincided with a prolonged period of hedge fund underperformance compared to traditional benchmarks. Unlike many of its US public pension peers, however, the Louisiana State Employees’ Retirement System (LASERS) has kept funds of hedge funds as the cornerstone of a successful absolute return allocation.

The $9.2 billion retirement system recently hired Prisma Capital Partners and Entrust Capital, two New York-based firms, as it expanded its hedge fund programme. Prisma is all set to handle $200 million, while Entrust Capital will have a $100 million opportunistic fund of hedge funds mandate. Onsite due diligence was done prior to board interviews in late May, with finalists that made the grade including Blackstone Alternative Asset Management, Entrust, Permal Group...

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Data

April 2013 Fund of Funds

Composite
Index Composite
InvestHedgeApr 13YTD%
Composite0.80%4.06%52%
Arbitrage USD0.71%3.46%49%
Asian Pacific Fund of Funds1.99%6.84%56%
Commodities-1.02%-1.49%61%
Distressed0.82%3.84%46%
Emerging Managers0.61%4.06%40%
Emerging Markets Hedge USD0.08%3.23%53%
European Equity EUR0.59%4.66%60%
European Multi Strategy EUR0.62%4.74%82%
Fixed Income USD0.92%4.02%62%
Global Equity USD0.59%5.62%49%
Global Macro Currency USD2.73%4.93%69%
Global Multi Strategy EUR0.83%3.93%48%
Global Multi Strategy USD0.69%3.95%47%
Leveraged Global Multi-Strategy USD1.34%5.10%74%
Self-Invested Fund of Funds USD0.92%3.67%97%
US Equity0.16%5.43%72%

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