General Motors gets an alpha tune-up via direct investments
Mon Sep 5, 2011
US car company pension now allocates more than $11bn
By Susan Barreto
General Motors has quietly revved-up its hedge fund investments
over the last 10 years to become the pace setter among
institutional investors. It has one of the largest hedge fund
portfolios among global pension funds.
Ten years ago – as reported in the debut issue of
InvestHedge – the General Motors pension plan decided
to allocate 1% of its $85 billion, roughly $800 million, to
hedge funds. GM staffers Paul Platkin and Mark Atanasio handled
manager selection with a small amount, totalling $100 million,
going to Man Group’s Glenwood Capital Management
Glenwood in turn operated as an adviser and strategic
consultant on manager selection to the GM team.
Prior to this formal decision, in 1998 as Long-Term Capital
Management was making headlines, GM made its maiden allocation
to hedge funds. The goal was to select between 20 and 30 hedge
funds in a wide variety of strategies...
ISSN: 2151-1845 / CDC10004H
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