Institutional Investors

PGGM focuses entirely on direct investments, moves away from funds of funds

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PGGM, the giant Dutch plan which administers $117 billion, intends to liquidate its fund of hedge funds holdings and move entirely into direct investments.

The move comes as a radical change in the plan's approach to hedge fund investing. Formerly, PGGM managed a roughly $2.31 billion hedge fund portfolio, with around two thirds in funds of funds.

The rationale behind the shift was to avoid excess overlapping beta exposure with the overall investment portfolio.

PGGM operates as an administrator and investment manager, having separated at the start of 2008 from the healthcare and social work sector scheme fund it