Hedge Funds Institutional Investors Redemptions

South Carolina moves to direct hedge fund investing

by

The $25 billion pension will likely place $4 billion with single-manager hedge funds over the next two years.

The $25 billion South Carolina Retirement System plans to flip its $5 billion hedge fund allocation from a 70/30 split between funds of funds and hedge funds to the other way around. In addition, the system is considering whether to construct its hedge fund portfolio as a limited liability corporation or limited partnership structure, much like a traditional fund of funds, which would help deal with some of the operational complexities if South Carolina wanted to have some of its relationships set up as separate accounts.

The fund was aiming last year to move to more direct investing to