Institutional Investors

Illinois Teachers to rely on fund of hedge funds


The Teachers’ Retirement System of the State of Illinois assigned two New York City-based credit managers to its absolute return portfolio.

BlueMountain Capital Management and Claren Road Asset Management will manage $50 million a piece in various credit alternative opportunities, according to the $35 billion retirement system. Although the search began for a specialist hedge fund consultant last year, officials relied on existing funds of hedge funds K2 Advisors and Grosvenor Capital Management to select its first direct hedge fund investments.

Last fall, trustees approved a tactical investment plan for its $1.2 billion