Institutional Investors

San Jose readies $500m in direct allocations

by

From now through early July, trustees for the $2 billion San Jose Federated City Employees will be conducting due diligence meetings with hedge funds after approving a 25% allocation to hedge funds earlier this year.

Officials will be visiting hedge fund managers in New York and London in order to move forward with placing up to $500 million with single manager hedge funds. The return objectives of the new portfolio would be Libor plus 5%.

The portfolio would be broadly diversified and uncorrelated to traditional market indices, thereby lowering overall portfolio risk, according to a presentation made by