Institutional Investors

Royal Berkshire reviews its absolute return programme

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More evidence, if any were needed, that hedge funds are now facing the crunch: the $2.3 billion Royal County of Berkshire pension fund, one of the UK’s most sophisticated and innovative local authority schemes, has hired a consultant to review its absolute return portfolio.

With its investment in the Lyxor Focus Fund coming up to its third anniversary a scheduled review was due anyway – but pension fund manager Nick Greenwood said that in any case the fund’s investment working group is becoming concerned about the lower than anticipated level of returns being generated,