Institutional Investors

TNO lets go of hedge funds

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The pension fund of Stichting Pensioenfonds TNO has disinvested from its hedge fund holdings, implemented via a FoHF, due to poor performance.

The $3.1 billion scheme, based in Riswijk in the Netherlands, said that despite the diversified nature of the hedge fund investment the returns had failed to meet expectations.

Over the previous 12 months the portfolio had achieved a return of -7.2% versus 6.2% for the benchmark. Its own internal research indicated that a similar risk/return profile could be implemented via strategic investment in traditional asset classes, and it therefore took the decision to terminate the hedge