Institutional Investors Performance

Texas Teachers’ hedge fund portfolio earns 7.7% in 2010

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The $100 billion Teacher Retirement System of Texas Trust Fund earned 12.6% for the 2010 plan year ending 30 September.

The $4 billion hedge fund portfolio specifically returned 7.7% for the year ending 30 June 2010 and far exceeded the benchmark of three-month Libor plus 2% that returned only 2.4% over the same time period. According to the annual report of the retirement system, investment staff are authorised to invest up to 5% of the total fund in hedge funds, but currently have 4.2% in the asset class.

A separate absolute return portfolio,