The State of Wisconsin Investment Board saw its hedge fund portfolio dip into negative territory in 2011 with returns of -1.4% for the year.
The returns (since January 31, 2011 inception) were still better than the benchmark, which was down more than 4% for the same timeframe. The first year for hedge funds at the $83 billion investment portfolio resulted in two key allocations. Trustees also allocated $100 million to the MKP Credit Fund in June and another $100 million to Capula in March. Another $300 million was allocated to AQR and Bridgewater for risk parity.