CalPERS shows how to do mixed investing
CalPERS' chief investment officer, Russell Read, discusses
how they mix hedge funds with funds of funds in one of the
worlds biggest public fund allocations to hedge
California Public Employees Retirement
System (CalPERS) was one of the early public fund adopters of
hedge funds, investing directly when many of its peers were
testing the waters with funds of funds. Today, the pension fund
can invest up to $12 billion, equivalent to roughly 8% of
CalPERS global equity portfolio, in hedge funds. This
means that another $6 billion or so can be put to work in
absolute return strategies.
At the same time, CalPERS has started to use funds of funds.
In a move that seems to be going in the opposite direction to
most institutional investors that start by investing via funds
of funds, CalPERS is now using...