Institutional Investors

Cheshire settles on direct mix with a twist of Fauchier’s fund of hedge funds


Cheshire Pension Fund is the latest UK pension plan to favour direct investing with larger ‘brand-name’ funds as the backbone of a sizeable hedge fund portfolio.

The Chester-based scheme has now fully funded its 15% hedge fund allocation, and a mix of direct and indirect investments have seen it allocate roughly $704 million to hedge funds run by Och Ziff Capital Management, Winton Capital, Arrowgrass Capital Partners and Fauchier Partners, as the fund of hedge fund allocation.

The shift into hedge funds originated as part of a major investment strategy review during the 2010/2011 financial year, conducted