General Motors revs up the alpha engine

Thu Jun 3, 2010

General Motors returns back from the brink of bankruptcy and it seems that the jewel in the crown is the pension fund. Susan Barreto talks to John Stevens about the $11 billion absolute return portfolio and its role in the pension plan’s revival

US car giant powers pension plan revival with the world's largest corporate hedge fund portfolio

By Susan Barreto

When US car manufacturer General Motors designed its first car just prior to 1908, little did the company's founders know that just less than a century later it would stake its claim as investment innovator in the pension fund community.

The year was 1998, and for many it was the Russian meltdown, near collapse of the financial system and the end of Long-Term Capital Management. It was also the year that, while many were predicting the demise of the hedge fund industry - then dominated by the legend - Promark Global Advisors (formerly General Motors Asset Management) began its initial allocation to hedge funds.

Bucking the investment trend of the time, hedge funds were becoming integral to the bottom line of the GM pension portfolio. Now, once again, as many speculate on the future...

ISSN: 2151-1845 / CDC10004H

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