Portable alpha programme raises the bar for
Bob Hunkeler, vice president of investments at
International Paper, talks about how he uses portable alpha to
expand the portfolios return horizons via funds of funds
2003, International Paper was set to become one of the initial
retirement plans to turn to the concept of portable
alpha in an effort to generate enhanced returns. The
Stamford, Connecticut-based pension funds goal was to
outperform large-cap US equities by using multi-strategy hedge
funds, funds of hedge funds and S&P swaps.
Putting the finishing touches on the programme in early
2007, the hedge fund allocation at the $8.5 billion corporate
pension fund has grown to more than $760 million.
Bob Hunkeler, vice-president of investments, declined to
disclose the names of six new managers hired, but says that
International Paper has allocated an additional 5%...