Hedge Funds Institutional Investors

Texas $23B pension targets 5% to hedge funds


The Texas pension fund for public employees plans to plow $1.15 billion into hedge funds within the next three years.

The $23 billion Employees Retirement System of Texas plans to allocate 5% of its capital—about $1.15 billion—to hedge funds within the next three years.

According to the pension plan's annual tactical plan outline, which was presented to its trustees at a board meeting yesterday, Texas ERS plans to make $358 million in commitments in 2012, $500 million in 2013 and $300 million in 2014. Each hedge fund investment will be valued at $50 million to $100 million and the investment staff plans to hire about 15 managers in total. The pension hired investment consultant Albourne