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
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
ISSN: 2151-1845 / CDC10004H
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