By Claire Makin
Bruce Tomlinson began developing Sunsuper's hedge fund
programme four years ago when the global financial crisis was
gaining strength just over the horizon. His brief was - and
still is - to seek out new sources of return for the $18
billion Australian superannuation fund.
Hedge funds are an important diversifier for Sunsuper.
Overall, the superfund has a 25% allocation to alternative
assets, including 7% to hedge funds, which is a hefty
commitment by the standards of most pension funds elsewhere in
the world. Sun¬super's hedge fund weighting is close to
double that of its peer group, according to Tomlinson, who is
the portfolio manager in charge of hedge funds and Australian
equities at Sunsuper.
It is a bet that has worked out well. Sunsuper's hedge fund
investments, which now amount to $1.26 billion, up from less
than $200 million in 2007, have been...