Institutional Investors

Public pensions look to minority managers

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The appetite for women- and minority-owned hedge funds appears to be growing, and the potential assets at play are estimated to top $378 billion, according to an industry survey from Barclays Capital.

The proportion of hedge funds owned by women and minorities remains small, though, at 3.3%. The number of minority- and women-owned hedge fund launches rose from 2006 to 2008, but retrenched in the past two years, probably due to the economic meltdown, according to Barclays.

While ‘affirmative investing’ has sparked controversy, public pension funds are part of the investment mandates for systems in several states, including