Institutional Investors

Texas Municipal Retirement extends education

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The board of Texas Municipal Retirement System has had a 5% allocation to absolute return strategies, but only earlier this year rounded off an in-depth education session with consultant RV Kuhns that began last October.

According to RV Kuhns, absolute return strategies are typically utilised by investors to increase portfolio returns, to decrease portfolio risk, and to provide performance with low correlation to traditional asset classes.

Trustees reviewed three broad types of hedge fund strategies: directional strategies; non-directional value strategies (which identify and capitalise on arbitrage strategies); and event-driven strategies (which anticipate and attempt to capitalise on certain